Mumbai: A growing economy and a booming equity market is a ripe combination to create new desi millionaires.
According to an Asia- Pacific wealth report published by Merrill Lynch and Capgemini, the number of high networth individuals in India have grown by 19.3 per cent to 83,000 individuals in 2005 compared to 70,000 individuals in 2004.
That is the second highest growth in the world.
India's dollar millionaires club is growing faster than most other economies. These are high networth individuals with net financial assets of at least $1 million or Rs 4.5 crore and above.
Indian high networth individuals held $290 billion in assets at the end of 2005, representing 3.8 per cent of total Asia pacific high networth wealth. And one of the primary reasons for the growth has been the dominant presence of equity in the portfolio of these dollar millionaires.
Says MD-DSP Merrill Lynch Ltd, Pradeep Dokania, "Last year too, the Indian market grew by around 42 per cent. So strong GDP growth along with market capitalisation grwoth rate has contributed to the increase in dollar millionaires."
The rise in millionaires has given a fillip to the private banking business in India. Currently, only a handful of entities cater to the high-end of private banking in India with only 10 per cent of the business handled by professional wealth management professionals.
Experts say that exposure to more diversified products apart from equity will help desi millionaires to grow their wealth.
Says Director Global Private Client, Merrill Lynch, Rajan Sehgal, "The amount of education and sophistication in terms of product and financial planning is taking place as we go along and our experience has been that we will grow and the clients will grow with many products and diversification, which we will bring as a financial industry to investors."
Adds Capgemini's Keenan Pereira, "We want to create an awareness of wealth management solutions that exist out there, coupled with investor education. We want investors to understand that there are services that cater only to them and we want to capture market share in a developing market like India."
An increasing trend is also the inclusion of professionals in the millionaire club.
Even though the list is dominated by business owners, professionals from high growth sectors like technology and services are also finding their way to this exclusive club.
Source: IBNLIVE
According to an Asia- Pacific wealth report published by Merrill Lynch and Capgemini, the number of high networth individuals in India have grown by 19.3 per cent to 83,000 individuals in 2005 compared to 70,000 individuals in 2004.
That is the second highest growth in the world.
India's dollar millionaires club is growing faster than most other economies. These are high networth individuals with net financial assets of at least $1 million or Rs 4.5 crore and above.
Indian high networth individuals held $290 billion in assets at the end of 2005, representing 3.8 per cent of total Asia pacific high networth wealth. And one of the primary reasons for the growth has been the dominant presence of equity in the portfolio of these dollar millionaires.
Says MD-DSP Merrill Lynch Ltd, Pradeep Dokania, "Last year too, the Indian market grew by around 42 per cent. So strong GDP growth along with market capitalisation grwoth rate has contributed to the increase in dollar millionaires."
The rise in millionaires has given a fillip to the private banking business in India. Currently, only a handful of entities cater to the high-end of private banking in India with only 10 per cent of the business handled by professional wealth management professionals.
Experts say that exposure to more diversified products apart from equity will help desi millionaires to grow their wealth.
Says Director Global Private Client, Merrill Lynch, Rajan Sehgal, "The amount of education and sophistication in terms of product and financial planning is taking place as we go along and our experience has been that we will grow and the clients will grow with many products and diversification, which we will bring as a financial industry to investors."
Adds Capgemini's Keenan Pereira, "We want to create an awareness of wealth management solutions that exist out there, coupled with investor education. We want investors to understand that there are services that cater only to them and we want to capture market share in a developing market like India."
An increasing trend is also the inclusion of professionals in the millionaire club.
Even though the list is dominated by business owners, professionals from high growth sectors like technology and services are also finding their way to this exclusive club.
Source: IBNLIVE