India's super rich got richer, here’s is where they are parking their money

Jan 18, 2023

By: Rounak Jain

Who are UHNIs or super-rich?

Most ultra high networth individuals or UHNIs saw their wealth increase by over 10 percent in 2022, according to a Knight Frank report. UHNIs are those who have an investable surplus of ₹25 crore or more.

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So where are the rich investing?

Indian super-rich, aided by wealth managers and other advisors, kept away from the biggest ‘crash’ of last year — cryptos. They allocated 0 percent of their funds to cryptocurrencies and more. That’s investment lesson No. 1.

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Equities – that’s where the assets are

The second lesson is to allocate funds across asset classes. The most popular choice for India’s super-rich is equities – that’s where 34 percent of their funds went.

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Homes and real estate

India’s super rich, on an average have 5.1 homes. Also, 25 percent of their funds went into real estate, and not all into homes.

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Real estate: Direct & indirect investments

17 percent of funds went into real estate assets (directly). But 3 percent was invested via funds and 5 percent via real estate investment trusts (REITs). The rich don’t keep all their eggs in one basket or under one roof.

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Keeping it private

No, they ain’t storing it in vaults. Due to their ability to make chunky investments, they can invest in private equity. And, 10 percent went into PE funds that invest in emerging opportunities.

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Playing it safe, also

The one thing the rich never do is take money for granted. Much like everyone else, their money is also subjected to a volatile global economic situation. They parked 16 percent of their funds in bonds and 6 percent in gold.

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Here come the passions

What use are riches if you can’t indulge in fancy. The rich are in fact equipped to spend on things that make them happy but let’s note that Indian super-rich spent only 4 percent – the least amount of allocations into passions.

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The Da Vinci Code

Art is on top of the list of passion investments with more than half of them going for them. There is an equal amount of love for watches, luxury handbags and jewellery.

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Wine & whisky

The next come classic cars, wine followed by rare whisky (yes, they are two different categories). As many as 29 percent of them showed affinity to furniture. The 5.1 homes ain’t sitting empty. Last on the passions list are coloured diamonds and coins.

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