Individual Wealth In Financial Asset Takes A Leap in FY19

New Delhi, November 26: Individual wealth in financial assets witnessed an increase of 10.96 per cent and grew to Rs 262 lakh crore in FY19, from Rs 236 lakh crore in FY18, according to a recent study. 

The study suggests that direct equity, fixed deposits, insurance, saving accounts and cash continue to become the top five investment instruments for individuals in FY19, with a total of 72.33 per cent contribution in overall financial assets.

Karvy Private Wealth in its report - India Wealth Report 2019 - estimates individual’s wealth to grow at a CAGR of 13.39 per cent to reach nearly Rs 799 lakh crore in FY24. It projects that the allocation to financial assets is estimated to be 66.11 per cent, while the allocation of physical assets would be 33.89 per cent.

Individual wealth in physical assets increased by 7.59 per cent, with gold and real estate covering 92.57 per cent of this space. This fiscal year the total wealth held by individuals in physical form stood at Rs 167 lakh crores, the study noted.

There is a net inflow of Rs 92,693 crore in MFs through SIPs, which is a 38 per cent increase when compared to FY18, it said. While the AUM of equity mutual funds grew by 20.27 per cent to Rs 9.53 lakh crore and debt mutual funds AUM grew by 12.89 per cent to Rs 4.23 lakh crore, alternative investment have grown to Rs 1,49,118 crore in FY19, the study noted.

“In the last 5 years the HNI population in India has grown by 64.10 per cent to reach 256,000 in 2018, from 156,000 in 2014. Individuals wealth in Mumbai and Delhi is home to over 70 per cent of the ultra high net-worth individuals (UHNI) population,” it said.