INDIA WEALTH REPORT
2014Reforming to Perform
Is your wealth favourably aligned to the overall Indian & Global Trends?
FDI
Volume 5 FOR PRIVATE CIRCULATION ONLY December 2014
Foreword
Sunil Mishra
Karvy Private Wealth
Contents
List of Tables
1
Executive Summary
2
Global Individual Wealth
to 20121
2
3
Individual Wealth in India
`
``
Table 1: Total Individual Wealth in India 2014
Asset Type FY14 (` Cr.) Proportion (%)
Physical
Total 2,57,41,664 100.00
3
Assets
Asset Type Amount (` Cr.) Proportion (%)
Cash
Total 1,34,71,160 100.00
` `
Figure 1: Asset-Wise Distribution of Individual Wealth in India (Financial Assets)
Fixed Depositsand Bonds
21.82%
Equity19.79%
Insurance16.43%
Saving Deposits12.09%
Cash9.66%
Provident Fund5.46%
NRI Deposits4.62%
Small Savings4.30%
Mutual Funds2.92%
Current Deposits2.29%
Pension Funds0.36%
Alternative Assets0.18%
International Financial Assets
0.09%
4
Asset Type Amount (` Cr.) Proportion (%)
Real Estate
Total 1,22,70,501 100.00
Figure 2: Assets Wise Distribution of Individual Wealth in India (Physical Assets)
``
`
Classes Amount (` Cr.) Proportion (%)
Real Estate Total 2,57,41,661 100.00
Gold 50.96%Real Estate
41.07%
Diamond6.33%
Silver1.59%
Platinum0.05%
5
Section 1:
Global Individual Wealth
4
5
Figure 3: Global Individual Financial Wealth
0.020.040.060.080.0
100.0120.0140.0160.0180.0200.0
2010 2011 2012 2013 2018E
121.4 122.0132.7
152.0
198.2
USD
Tril
lions
th
Figure 4: Figure 5:
Number of HNIs Globally Global HNI Wealth Allocation
Africa1%
Latin America4% Middle East4%
Europe28%
Asia-Pacific31%
North America32%
Africa2% Latin america
4%
Middle East15%
Europe24%
Asia-Pacific27%
North America28%
Figure 6: Forecast of Global HNI Financial Wealth
Global (%)
Real Estate
Total 100.00
Source: World Wealth Report 2014, Page 9, Figure 6, Capegemini and RBC Wealth Management
Section 2:
Indian Economic Scenario
10
11
12
10
Section 3:
Individual Wealth in India
`
``
Table 6: Total Individual Wealth in India in 2014
Asset Type FY14 (` Cr.) Proportion (%)
Physical
Total 2,57,41,661 100.00
Figure 8: Compostion of Indian Individual Wealth
Financial 52%
Physical48%
11
Section 4:Asset wise break up of Individual Wealth held in Financial Assets
`
4.1 Fixed Deposits & Bonds
Bank Fixed Deposits:
`
` 13
sectors14
Individual Wealth held in Bank FDs stands at `27.91 Lakh Crore in FY14 and has grown by
Cash
12
Table 7: Composition of Individual Wealth in Bank Fixed Deposits
Bank Category Amount (` Cr.) YOY Change (%)
Total 27,91,256 17.14
Corporate Fixed Deposits:
The Individual Wealth in Corporate Fixed Deposits in the FY14 is about `67,676 Crore a
NBFC Deposits:
(i) N(ii)
Types of NBFCs FY13 (` Cr.) FY14 (` Cr.)
Total Individual Deposits
13
Bonds and Debentures:
st
` `of 66.41% over the FY13.
PSU Bonds: ` st
The estimated individual wealth in these bonds is `54,300 Crore.
Corporate Bonds: `
is `13,637 Crore.
Bank FDs97%
Corporate FDs2%
NBFC Deposits1%
Figure 9:Composition of Individual Wealth in Fixed Deposits
14
Table 9: Composition of total and Individual Wealth in Bonds and Debentures
Individual Wealth in FY13 (` Cr.)
Individual Wealth in FY14 (` Cr.)
YOY Change (%)
Total 67,937 66.41
st st
` `th
`
`
Investors % of Market Capitalization Amount (` Cr.)5033
Total 100 72,77,719
`26.6 Lakh Crore.
`
15
20 ``
`22.12 Lakh Crore.
FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)
22,12,654
`
`
` `
`
4.4 Saving Deposits
`
Savings Bank Deposits:The Individual wealth in Savings Deposits stands at ` st2014, marking a growth of 7.96% over FY13.
21
Table 12: Composition of Individual Wealth in Bank Savings Deposits
Bank Category Amount (` Cr.)
Total
Current Bank Deposits:
The Individual wealth in Current Deposits stands at `
Table 13: Composition of Individual Wealth in Current Bank Deposits
Bank Category Amount (` Cr.)
Total
Table 14: Composition of Individual Wealth in different types of Bank Deposits
Type of Deposits FY14 (` Cr.) FY13 (` Cr.) YOY Change (%)
Deposits (Current, Savings and Term Deposits)
22
st
gion-Wise Distribution of Individual Wealth held in Deposits with SCBs
Amount (` Cr.) Proportion (%)24
North 221514
West 232
Figure 11: Household Bank Deposits
Rural10% Semi-Urban
14%
Urban/Metropolitan
76%
Figure 10:
Distribution of Depositsaccording to area
0.00
100000.00
200000.00
300000.00
400000.00
500000.00
600000.00
700000.00
` Cr
ore CURRENT
SAVINGS
TERM
4.5 Cash
The table shows that as on 31st `13 Lakh Crore worth
Table 16: Individual Wealth in Cash
Year Amount (` Cr.) YOY Growth (%)20142013201220112010
Figure 12: Cash held by Individuals
4.6 Provident Fund
`4.74 Lakh Crore.
0
200000
400000
600000
800000
1000000
1200000
1400000
2010 2011 2012 2013 2014
` Cr
ore
Table 17: Assets In Provident Fund
Composition of PF FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)23
Total 7,36,096 5,24,300 40.39
The individual wealth in provident funds is `7.36 Lakh Crore with 40.39% YOY growth.
st `6,22,33724 Crore. The
Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)
NRENROTotal 6,22,337
20
The Individual Wealth in Small Savings stands at `
Table 19: Individual Wealth held in Small Savings
Type FY14 (` Cr.) FY13 (` Cr.) YOY Change (%)
Total 5,65,016 2.45
4.9 Mutual Funds
25
``
21
30
The total Individual Wealth in Mutual Funds stood at `3.93 Lakh Crore up from `3.49 Lakh Crore in FY13.
Table 20: Mutual Funds based on underlying Investment by Individual Investor
Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)
Debt
Total 3,93,140 349,749 12.40
4.10 Pension Funds
st
• • • • • • •
As on 31stManagement) of ` 31 Crore.
31 PFRDA
22
4.11 Alternative Assets
Category Sub-Categories
st
` 32
` 33 The
to be `23,727 Crore in FY14.
Table 21: Composition of Individual Wealth in Alternative Assets
Asset Class Amount (` Cr.) Proportion (%)
12114
Total 23,727 100.00
23
High Yield Debt:
34
`6,162 Crore.
`
`5,279
35
` `
` 37 Crore as against `
`
24
`
`2,309 Crore
Hedge Funds:
` The `
over FY13.
Film Funds:
The individual wealth in these funds in the FY14 stands at `
25
`st
` 40 `121
Crore.
Venture Capital Funds:
`` 42 The individual wealth in these funds is estimated to be `14 Crore.
4.12 International Assets
Table 22: Individual Wealth in International Assets upto 2014
Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)
Total 12,659 43.02
``
Section 5:
Asset wise Break-Up of Individual Wealth held in Physical Assets in India
Real Estate
5.1 Gold
` 43
`
45
Table 23: Composition of Individual demand in terms of Jewelry and Bars and Coins Investment
Period Jewelry Bars and Coins Total Q1 FY14 122 310Q2 FY14Q3 FY14Q4 FY14
Source: World Gold Council
Figure 13: Quarterly Demand of Jewelry and Bars and Coins Investment
Table 24: Composition of Individual Demand in Gold (in tons)
FY13 FY14 YOY Change (%)
The total value of wealth in individual gold stands at ̀ 62.5 Lakh Crore up 3% from FY13.
188
104.7
150.7 145.6
122
43.5
68
44.7
0
20
40
60
80
100
120
140
160
180
200
Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14
Tonn
es
Jewelry
Bars and Coins
Overview and Market Size:
Investment through FDI route:
50
51
` `500 Crore
` `
` `
`
`
Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)
Total 46,09,510 9.32
`
5.3: Diamond
52
30
` 53
54
55 The Individual Wealth in Diamond is estimated at ` .
5.4: Silver
The total household wealth that is `1.9 Lakh Crore.
5.5: Platinum
` ` The total Individual Wealth in the form of Platinum stands at ` `3,466 Crore in FY13.
31
Section 6:
Individual Wealth-India versus World
Table 26: Individual Wealth-India versus World
India (%) Global (%)13 25
43
13
Real Estate 20Total 100 100
32
Section 7:
Survey on HNI Investment Behavior in India
Figure 15:Figure 14:
of wealth
Entrepreneurship31%
Inheritance11%
Work Benefits
58%
Change 46%Follow the
same51%
Not Applicable 3%
33
Figure 16:
Trend in Corporate FDs Investment Figure 17:Trend on investing in
Corporate FDs
48%52%
Yes No
Yes No
29%
71%
Figure 19:Investment in International
Yes No Never Invested
46%
31%
23%
Investment inAlternative asset
0%20%
40%60%
80%
Yes
No
64%
36%
34
Figure 20:
Equity38%
Debt39%
Physical Assets
16%
Alternative Assets 5%
International Assets 2%
Wealth Manager46%
Chartered Accountant
11%
Family32%
Peers11%
Figure 21:
35
Section 8:
Future of Indian Individual Wealth
`514 Lakh Crore in FY19 from `257 Lakh Crore
Asset Type FY19 (` Cr.) FY14 (` Cr.)
Physical
Total 2,57,41,664
`316
Financial Assets52%
Physical Assets48%
FY14
Financial Assets62%
Physical Assets38%
FY19
FY19
Asset Class FY14 (` Cr.) FY19 (` Cr.)
Cash
Total 1,34,71,160 3,16,74,990
TClass Wise Distribution in FY19
Asset FY19 (` Cr.) FY14 (` Cr.)
Real Estate
Total 1,22,70,504 10.0
Direct Equity35.24%
Insurance16.47%
FixedDeposits16.08%
Savings D;eposits 7.60%
Provident Fund 5.88%
Cash5.87%
Mutual Funds 3.85%
NRI Deposits3.61% Small Savings
2.87%
Current Deposits1.22%
Bonds0.49%
Pension Funds0.38%
Alternative Assets 0.30%
International Assets0.13%
`
Future Trends
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