Chandigarh, December 13: KARVY Private Wealth, the wealth management arm of the leading financial-services conglomerate KARVY Group, launched its 8th edition of India Wealth Report 2017 today. The Report provides a holistic view of the Wealth held by individuals in India and the future investment patterns. Based on extensive research, the report is a big draw among individual investors in India for predicting the future “Wealth” trends.
Global private financial wealth grew by 8.2% in 2016 to reach $63.5 trillion, against a growth rate of 4% in 2015. After close to a decade of economic slump, global economy is on a recovery mode. While US recorded a GDP growth rate of 3% in July-September period, China is estimated to grow at 6.8% in 2017. Amid such optimism, Indian economy is also showing signs of a turnaround after a temporary blip owing to various structural reforms.

Measures such as demonetisation, implementation of GST, RERA and the new Insolvency and Bankruptcy Code have changed the ways of doing business in India. This has led to more informal sectors coming under the fold of formal economy along with increasing preference for financial assets over physical assets. Going ahead, we expect this trend to continue over next 5 years with direct equity, mutual funds, fixed deposits, insurance and pension funds contributing a larger portion of overall asset pie. On the other hand, despite contraction of physical assets base, real estate is likely to become the most preferred physical investment option for Indians in coming years.
In FY17, total wealth held by individuals in India grew by 11% to Rs 344 lakh crore on the back of stellar performance of direct equity asset class. According to the report, the wealth held in financial assets by Indian individuals has seen a substantial rise in FY17 growing at a rate of 14.63% to Rs 204 lakh crore. This is a significant trend reversal from previous year when physical assets had an upper hand over financial assets in terms of growth rates. Interestingly, once risk averse individual investors are also embracing direct equity as a lucrative investment option in their bids to beat inflation and garner high return.