Net worth of 86% affluent investors in India rose in last three years: Survey

The survey also indicated that only 39% of the surveyed affluent investors in India believe that the challenges posed by the current economic volatility will not have a significant impact on long-term wealth creation, while 35% of them believe the current situation is an opportunity that can improve their long-term wealth.

The survey highlighted the investment trend of India’s affluent investors. Many of them are now attracted towards diversified investments. Moreover, options like digital assets, private equity and hedge funds, have become more lucrative for wealthy investors. 

Growing interest in digital asset

Around 86% of affluent investors in India owned digital assets that included cryptocurrency, NFTs and stablecoins, said the report. As per the data, nearly nine in ten investors owned digital assets in India.

The survey reflected upon the prevalent optimisim in the Indian market related to digital investments. The survey says that around 59% of affluent investors in India are hopeful that digital assets have immense potential. They also believe that these assets need aggressive investment for growth.

Unlike significant scepticism around AI in other sectors, share market sector of India is hopeful that AI can bring positive change in the market. Around 75% of the surveyed affluent investors in India believed that AI-driven advisory ensures that their investment portfolio will quickly adjust to market trends, leading to optimized outcomes, while almost two-thirds [insert missing number] of them see AI as an effective tool to monitor their portfolio and raise alerts when needed.

Mutual fund continues to be a safe haven

Despite a growing appetite to diversify funds in unconventional assets, many investors continue to rely on mutual funds. Around 72% are invested in mutual funds, and 60% of them are invested in exchange-traded funds (ETFs), found the survey. Not just MFs, 70% of the surveyed investors also hold direct equity shares in teh market. This is way more than the average for the sampled markets, ie 55%. The survey also found that around two-thirds of the affluent investors in India sampled have private equity assets and more than half (53%) of them are already invested in hedge funds.

India emerges as the leading investor in ESG in Asia-Pacific

The report says that three in five of the affluent investors in India hold ESG investments, which is equal to 61%. The percentage is way more than the average for the surveyed markets, ie 44%. The survey also reflect the loss of interest of investors in real estate market. Only 40% of the sample of affluent investors in India hold real estate investments.

“Modern, affluent Indian investors are looking to maximize their portfolio growth and are moving away from traditional asset classes like real estate. They’re thinking about a wide range of investments and increasingly open to the concept of AI-enabled tools to enhance their portfolio’s productivity,” Ms. Lynn said.

The Global Wealth Blueprint survey evaluated the response of 600 affluent investors based mainly in Asia-Pacific. It included more than 100 respondents from India.

Updated: 11 Sep 2023, 06:34 PM IST