Wealth Management Industry Potential in India
1. Creation of Wealth is happening very rapidly in India
2. India has more billionaires than Japan
3. 1000+ house-holds with USD 30 Million or above
4. 2,50,000+ house-holds with USD 1 Million or above
5. Only 5% of High Net Worth Individuals are tapped by the Indian Wealth Management Industry
6. Only 25 Private Banks with around 15000 Wealth Manager targeting this big chunk of Wealthy Indians
7. If a Wealth Management firm is able to get 2% of Wealth of these individuals then it would have USD 5 Billion of Assets Under Management(AUM)
8. If we consider the house-holds with USD 50,000 to 1,00,000 as wealthy the number is 1.50 Million and this is growing at a very fast rate.
9. India is poised to become the second largest market in terms of incremental wealth added after China
10. Indians save USD 300 Billion every year. But how much of this is channeled into investment is
a big challenge ,as well as an opportunity for the Indian Wealth Management Industry.
11. Consider the following figures on potential of Indian Wealth Management Industry if 20% of this 300 Billion USD is channeled into stock markets and India gets about 60 billion offshore funds then the total size of the Indian Wealth Management Industry would be around USD 120 Billion
12. Preferred savings instruments of Indian as of now is Real Estate and Gold. Both of these have their own problems and sooner or later Indians would become more agreeable to Capital Market Investment Instruments
13. Investible Surplus with Indian Families is increasing as Double Income Nuclear families are becoming more prevalent.
14. Indians investor today is becoming more financially savvy and Financial Literacy is improving making Wealth Managers more acceptable to Indians
15. Investment products are becoming more complicated and difficult to understand for the common investor forcing them to seek expert advisors.
These are 15 reasons that depict the potential of Wealth Management Industry in India.
Next blog we would be looking at the challenges before the Indian Wealth Management Industry
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