India’s Wealth Shifts Inward: Domestic Engine Roars, But Investor Behavior Lags Behind
India’s wealth landscape is undergoing a significant transformation, with domestic investors driving growth and shifting towards riskier assets. Here are the key trends:
Domestic Investment Surge: Monthly SIP investments are expected to reach â‚ą48,000 crore, contributing to a projected â‚ą54 lakh crore in total domestic investments by the end of the decade.
Riskier Asset Allocation: Equity and investment funds now account for 28% of household financial assets, up from 18% a decade ago.
Shift from Traditional Savings: Deposits and insurance funds are losing appeal, with shares dropping to 38% and 13.4%, respectively.
Growing Appetite for Alternatives: Alternative Investment Funds (AIFs) have seen a 4x growth in assets under management, reaching $101 billion.
Market Sentiment:
– Indian stock benchmarks inched higher in the special Diwali session, extending their recent rally.
– Nifty 50 and BSE Sensex reached one-year highs, driven by optimism over earnings and potential easing of US-China trade tensions.
Wealth Trends:
– India’s ultra-high-net-worth individuals (UHNIs) have grown to 142, ranking ahead of many developed economies.
– Diversified groups account for 24 out of 157 Indian dollar billionaires, contributing 38.18% of total wealth.
Team: Creditmoneyfinance.com, Startupindia.club, Economiclawpractice.com