India beat U.S. in HNI growth rate

India beat U.S. in HNI growth rate

By SiliconIndia   |   Friday, 24 June 2011, 10:49 Hrs
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Bangalore: India's population of HNIs surged 21 percent to 1, 53,000 in 2010, according to the Merrill Lynch-Capgemini World Wealth report. It continued to benefit from a robust economy and asset classes like equities and real estate. India’s HNWI population became the world's twelfth largest in 2010, entering the top 12 for the first time. Relatively high GDP growth rates along with higher market capitalization helped Indian HNIs to generate more wealth, Atul Singh, managing director and head, Merrill Lynch Global Wealth Management-India.

Asia-Pacific posted the strongest regional rate of HNWI population growth in 2010, among the top three markets. Asia-Pacific has now surpassed Europe in terms of HNWI population, expanding 9.7 percent to 3.3million, while Europe grew 6.3 percent to 3.1 million. Asia-Pacific HNWIs’ wealth gained 12.1 percent to U.S. $10.8 trillion, exceeding Europe’s HNWI wealth of U.S. $10.2 trillion, where the wealth increase was 7.2 percent in 2010. Asia-Pacific is now the second largest region for both HNWI wealth and population, second only to North America. In an environment, of relatively stable and uneven recovery, equities and commodities markets, real-estate performed solidly throughout 2010.

The world’s high net worth individuals (HNWIs) 1 expanded in population and wealth in 2010 surpassing 2007 pre-crisis levels in nearly every region, according to the report. Global HNWI population and wealth growth reached more stable levels in 2010, with the population of HNWIs increasing 8.3 percent to 10.9 million and HNWI financial wealth growing 9.7 percent to reach U..S $42.7 trillion (compared with 17.1 percent and 18.9 percent respectively in 2009). The global population of Ultra-HNWIs2 grew by 10.2 percent in 2010 and its wealth by 11.5 percent.

According to a World Wealth Report by Merrill Lynch Global Wealth Management (MLGWM) and Capgemini, it is the second straight year in which India’s HNI population growth has been among the top.

“India’s HNI population grew at 20.8 per cent to 153,000 compared with 126,700 in 2009,” said the report.

The resulting increase in money available for spending and the country’s increased integration with the global economy have widened the population’s exposure to major global luxury brands and triggered a “luxury revolution”, the report added.

Though India might have made its place among the top 12 countries, globally the HNI population is still concentrated in three markets and the U.S., Japan and Germany together accounted for 53 per cent of the world’s HNIs in 2010; the U.S. alone constitutes 28.6 per cent of the global HNI population. The world’s HNIs expanded in population and wealth in 2010, surpassing the 2007 pre-crisis levels in nearly every region, said the report. The global HNI population and wealth growth reached more stable levels in 2010, with the population increasing 8.3 per cent to 10.9 per cent. Their financial wealth grew 9.7 per cent to reach $42.7 trillion. The Asia-Pacific witnessed the strongest regional rate of HNI population growth, surpassing Europe in 2010. Interestingly, in 2009, HNIs’ wealth in the Asia-Pacific had already overtaken Europe.
With the economic scenario again showing signs of worsening and capital markets around the globe under pressure, experts believe the year is likely to end with muted growth in the population of HNIs.

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