Equity is the the most attractive asset class for investments among the ultra-high-net-worth individuals (UHNWIs) of India despite the global headwinds, according to a Knight Frank report. As per the Knight Frank’s Wealth Report 2020, 83 per cent of ultra-high-net-worth-individuals in India are planning to increase or maintain their allocations in equities, followed by bonds (77 per cent) and ahead of property (51 per cent).
“In 2019, for Indian UHNWIs, equities remained the most preferred asset class in the portfolio with 29 per cent allocation, followed by 21 per cent allocation for bonds and 20 per cent into property investments. On the contrary, Asian UHNWIs preferred property investments with 28 per cent asset allocation, followed by 21 per cent in equities which is closely followed by 19 per cent allocation in bonds,” said the report.
It noted that while 24 per cent of Asia Pacific’s UHNWIs are looking to invest in commercial property domestically, 17 per cent are allocating capital to cross-border purchases in the coming year. Comparatively, 26 per cent of Indian UHNWIs are looking to invest in properties within the country while 15 per cent of them have plans to invest abroad.
Neil Brookes, Head of Capital Markets, Asia Pacific, Knight Frank, said: “Despite uncertainty in 2020 around the impact of COVID-19 (novel coronavirus), interest for assets remains high with significant capital chasing limited stock. While some private investors may delay their decisions due to the current climate, we expect secure assets that offer quality income streams to be in increasing demand.”
The report further said that about 94 per cent of the money managers in India are expected to actively alter their clients’ investment strategies to protect their wealth in 2020.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: “Despite the underlying economic challenges, Indian UHNWIs are optimistic about their wealth creation prospects. A remarkable 73 per cent of them expect an increase in their wealth compared to 55 per cent of their global counterparts.”
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