Indians Turning Richie-Rich: Individual Wealth To Grow At 17 Per Cent To Touch Rs 517 Lakh Crore In Next Five Years

According to a new report released by Karvy Private Wealth, the cumulative individual wealth of Indians will increase to Rs 517.88 trillion by FY23 (Financial Year), registering an annual growth rate of 16.99 per cent, as reported by Business Standard (BS).

The report, titled ‘India Wealth Report 2018’, noted that direct equity and mutual funds would make the most significant contributions in increasing the individual wealth of citizens. These asset classes are projected to grow at a CAGR (Cumulative Annual Growth Rate) of 24.41 per cent and 21.04 per cent respectively.

Commenting on how return on investments in equities could surpass those of in other instruments, Karvy’s CEO (Chief Executive Officer), Abhijit Bhave, said, “the coming five to seven years are expected to be the time for equity as an asset class and investors can possibly treble their wealth in equities.”

In recent years, due to the falling savings rates and higher risk appetite, the vast Indian middle-class has taken to investing in financial instruments like mutual funds and other individual equities.

It should be noted that domestic financial institutions in India, who managed funds from small and medium Indian investors, spent 80 per cent more on Indian stocks than their foreign counterparts. “Incrementally, more savings will go to financial assets than physical assets,” added Mr Bhave.

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