More than eight out of every 10 affluent investors in India saw an increase in net worth in the last three years, as per a survey conducted by Bloomberg Media Group. The study is based on the opinions of more than 600 affluent investors based predominantly in Asia-Pacific – including more than 100 respondents from India.
As per the findings contained within The Global Wealth Blueprint report, affluent investors in India are displaying an increased appetite for diversified investments, and a willingness to significantly update their portfolios to include newer investment avenues, such as digital assets, private equity and hedge funds.
Despite the recent volatile global investment landscape, investors surveyed across four major Asian markets and one Middle Eastern market (Hong Kong, India, Mainland China, Singapore, and the United Arab Emirates) were optimistic about their long-term wealth creation, with less than one-quarter of participants (24%) identifying as pessimistic about their long-term wealth prospects.
84% of the surveyed affluent investors in India saw their net worth rise in the last three years, as per the study. Moreover, 39% of the surveyed affluent investors in India believe that the challenges posed by the current economic volatility will not have a significant impact on long-term wealth creation, while 35% of them believe the current situation is an opportunity that can improve their long-term wealth, the study shows.
“Modern, affluent Indian investors are looking to maximize their portfolio growth and are moving away from traditional asset classes like real estate. They’re thinking about a wide range of investments and increasingly open to the concept of AI-enabled tools to enhance their portfolio’s productivity,” said Michelle Lynn, Global Head of Data Science & Insights at Bloomberg Media.
“The findings also show that affluent investors in India prefer to keep themselves well-informed on financial and market trends, with a majority of them preferring to do their own research through financial publications and podcasts to stay ahead of the curve. There is real ambition and self-sufficiency amongst affluent investors in India – they are more eager than investors in other markets to pursue every possible data source and investment tool to meet those ambitions," Lynn added.
Here are some interesting findings from the study:
· Nearly nine-in-10 (86%) of the surveyed affluent investors in India are invested in digital assets including cryptocurrencies, NFTs and stablecoins.
· 70% of the affluent investors in India sampled hold direct equity shares (highest among the sample markets; with the average for the other sampled markets at 55%).
· Almost three-quarters (72%) of the affluent investors in India are invested in mutual funds, and 60% of them are invested in exchange-traded funds (ETFs).
· Nearly two-thirds (65%) of the affluent investors in India sampled have private equity assets and more than half (53%) of them are already invested in hedge funds.
· Three in five (61%) of the affluent investors in India currently hold impact or ESG investments (highest among the surveyed markets, with the average for other surveyed markets at 44%).
· In contrast to traditional investment trends, just 40% of the sample of affluent investors in India hold real estate investments – this is the lowest among the sampled markets, with the average at 60%.
· Despite recent market volatility, nearly three-in-five (59%) affluent investors in India believe that digital assets have immense potential and need to be aggressively invested in.
· A significant majority of affluent investors in India are optimistic of the role that AI can play in their financial investment journey; three-quarters (75%) of them believe that AI-driven advisory ensures that their investment portfolio will quickly adjust to market trends, leading to optimised outcomes, while almost two-thirds [insert missing number] of them see AI as an effective tool to monitor their portfolio and raise alerts when needed.
· Affluent investors in India prefer the personal touch: in terms of their relationship with their wealth managers, over half (51%) of the Indian investors sampled say they prefer personalised engagement; compared to just 36% in other markets. Innovative services and expertise on ESG investment opportunities are the joint-second most important factors for Indian investors while evaluating a wealth management service.
“We’re seeing a marked shift within the Indian investor cohort, in that they are not just interested in portfolio gains, but also social and climate-related impact and ESG investments, with a majority of them interested in supporting philanthropic initiatives as well,” Lynn says.
