India Recorded 2nd Highest Growth in HNI Population Last Year

The growth in number of HNWIs in India was attributed to positive trends in equity market capitalisation, gross national income, consumption and real estate.

In Asia-Pacific, equity markets responded well to aggressive monetary policy moves. In India, reform measures and monetary easing helped equity markets gain by 23.9 per cent, while strong exports in South Korea partly contributed to a 20.2 per cent gain there.

Going forward the future outlook looks cautiously upbeat, led by Asia-Pacific.

According to the report, global HNWI wealth is forecast to grow by 6.5 per cent annually over the next three years with the Asia-Pacific region projected to grow at one and a half times the global average at 9.8 per cent and is expected to lead global growth.

"Despite a marked focus on capital preservation and high cash allocations, high net worth individuals achieved a record level of wealth in 2012, suggesting further growth lies ahead if trust and confidence in the markets increase further," said M George Lewis, Group Head, RBC Wealth Management & RBC Insurance.

Meanwhile, according to the report, art market continued its recovery with strong growth in emerging markets especially China, Brazil and UAE.

But the same cannot be said about India as it is still at an earlier, more nascent stage in terms of art buying, with HNWIs not yet allocating much of their portfolio into art compared to other emerging markets, the report said.

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