1% Controls 60% of Total Wealth in India, Rich to Get Richer: Report
The Wire Staff
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New Delhi: Only one per cent households control around 60% of the total wealth in India, indicating to the highly concentrated nature of household wealth in the country.
According to a recent report by brokerage firm Bernstein, the super rich in India, estimated to be around three million households hold $2.7 trillion in liquid financial wealth, reported Business Standard.
The Bernstein report also adds that only one per cent of the rich, comprising top three per cent of households, owns 70% of assets, 45% of incomes and 80% of financial assets. Similarly, the 'uber rich' comprising top one per cent of households owns 40% of incomes, 60% of assets and 70% of financial assets.
The brokerage firm also believes that in India, the rich will get richer because of this highly concentrated nature of household wealth.
"Although growth will continue to create opportunities across the pyramid, we think the rich will get richer. India’s uber-rich – an estimated nearly three million households – hold $2.7 trillion in liquid financial wealth, by our estimates," observed Bernstein, reported Mint.
This rise of the uber-rich is also expected to increase the demand for professional wealth managers.
"With rising return expectations and product complexity, demand for professional advice is growing. We see specialised wealth managers benefiting, with a long growth runway. We expect specialised wealth managers to expand from $300 billion in assets under management (11 per cent share) to $1.6 trillion over the next decade, implying an 18 per cent CAGR," said Bernstein.
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