Where richest man in India invest their money
Apart from traditional asset classes, India’s Ultra High Net Worth Individuals spent their money on passion investments last year. This includes buying art, vintage cars, and expensive jewellery, says this new wealth report by Knight Frank.
The annual Knight Frank Wealth Report 2022 that was released this month offers some insights into how India’s Ultra High Net Worth Individuals or UHNWIs spend and invest their money. Unlike the Hurun India Wealth Report which looks at High Net Worth Individuals (HNIs), Knight Frank Wealth Report’s UHNWI is a significantly exclusive group.
People with a net worth of $1 million or approximately Rs 7 Crore are HNIs; those with a net worth of $30 million or Rs 210 Crore are classified as UHNWI.
According to the Knight Frank Wealth Report, India’s UNHWI allocates 11 per cent of its wealth to passion-led investments. Passion-led investments include the purchase of assets such as jewellery, classic cars, or even luxury handbags, the value of which can potentially increase over time.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said in a statement, “Indian UHNWIs have a resounding appreciation towards investing passion, where the idea goes beyond pure risk and return dynamics. With the world coming closer in this digital age, we expect this event to be stronger in the country. ,
[the_ad id=”64987″]So where did India’s rich invest in this past year?
According to the Attitude Survey in Knight Frank’s Wealth Report 2022, Joy of Ownership scored above investment returns and marked as the driving factor for collecting passion investments by the ultra-rich.
The report shows that most ultra HNIs bought art as an investment last year. Jewelery ranks second on the list of asset classes in which India’s rich have invested, followed by classic cars, watches and luxury handbags.
India’s richest people are smart enough to invest in the arts; According to Knight Frank’s Luxury Investment Index, Art provided returns of 13 percent over a 12-month period and 75% over a 10-year period.
Although they did not make it to the top five, the wines and rare whiskeys continued to be preferred by many wealthy Indians. Interestingly, the investment in wine increased by 16 percent while the value of rare whiskey increased by only 9 percent. Interestingly, over the long term — over a ten-year period — rare whiskeys are expected to give investors a 428 percent return compared to a relatively moderate 137 percent return on wine.