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India among Top 20 wealth markets worldwide
By siliconindia
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Monday, 11 December 2006, 18:30 IST
Mumbai: India and Russia have completed the BRIC effect (Brazil, Russia, India and China). The two countries, standing at ranks 19 and 20 respectively, have managed to gatecrash into the top 20 wealth markets in the Global Wealth 2006 list. The other two countries in the group, China and Brazil have appeared in the top-20 list every year since 2000, reported The Economic Times. It further said that the Bric nations might rule the roost in the coming years as well.
Quoting the Global Wealth report, ET said that the four countries are expected to grow nearly twice as fast as the global average at 10.6percent to touch $7.1 trillion. India will show the fastest growth at 13.3 percent to touch $1 trillion by 2010-end. However, despite the superb growth, Indiaâs share in the global wealth market is likely hover around the 0.08 percent mark. The US remains the undisputed number one with about $31-trillion worth of assets under management last year.
The Global Wealth report in its sixth edition said that there is a common thread behind the rapid rise in wealth creation in Bric countries: high GDP growth and a rising stock market. In general, investment portfolios in these countries are known to hold nearly 60-70percent of their assets in cash or bank deposits. The report is part of an annual research conducted by the Boston Consulting Group.
The ET report noted that India provides clear evidence to the fact that the aforesaid asset mix is all set to change. An APAC wealth report by Merrill Lynch earlier this year had suggested that high net worth individuals (HNIs-defined as a person with assets more than $1 million) in India have more than 31 percent of their assets in equities, just above the global average of 30 percent. HNIs in China, in comparison, have the lowest allocation to equities at 14 percent.
While numbers on the millionaire list in India have climbed from 67,798 in 2004 to 84,000 last year, the Sensex has moved up nearly 35 percent in the past two years on an annual basis. Experts told ET that this could act as a powerful demonstration effect.