A new report shows that 55% of the total wealth in the country is with those having less than $1,00,000 net worth. In contrast, only 18% of the global wealth is with those in this income category. The Boston Consulting Group’s (BCG’s) Global Wealth Report 2018 also shows that those with more than $1 billion in personal wealth, account for 16% of the total wealth in the country. This is the second largest category under wealth distribution head.
Personal wealth growth
The report goes on to estimate that personal wealth grew at 12% from 2017 to 2018 in India, compared with 15% in the previous year. Overall, the report estimates a 13% CAGR (compounded annual growth rate) from 2017 to 2022. This matches with the growth rate in Asia (excluding Japan) for the same period, but is much faster than the 7% growth in personal wealth estimated for the world. The character of personal wealth in India is also slowly changing, according to the report. While investable wealth — listed equity, bonds, investment funds, currency and deposits and other smaller asset classes — accounted for 64% of total personal wealth in 2012, this proportion is expected to increase to 70% by 2022.
Further, the category that has and will see most growth is investment in equities and investment funds, the report showed. While this category made up 17% of the personal wealth in 2012, it increased to 22% in 2017, and is expected to further increase to 32% by 2022.