The rise in wealth has marked higher domestic participation in the capital markets, mutual funds, making the trend a sustainable one, according to India Wealth Report 2019, published by Karvy Private Wealth.



Financialisation of household savings, a key to nation building, gathered pace in FY19 with individual wealth in financial assets rising double digit. The rise in wealth has marked higher domestic participation in the capital markets, mutual funds, making the trend a sustainable one, according to India Wealth Report 2019, published by Karvy Private Wealth.



Individual wealth in India grew by 9.62% in FY19 to Rs 430 lakh crore. The major growth rate of 10.96% was seen in financial assets as compared to physical assets, which grew by 7.59%, the report said.


“There has been a talk of increased financialisation of savings in the recent past. Evidence of this has been clearly seen in the last five years,” Karvy said. “The proportion of financial savings has gone up to 60.95% from 57.25% in last 5 years. “We expect a continued shift towards financial assets in India in near future as well.”




The report projected total individual wealth in India to grow 13.6% per annum to Rs 799 lakh crore by FY24, which is nearly twice the current wealth holdings by individuals with the share of financial assets growing to 66% of total assets.


In the last five years the HNI population in India has grown by 64.10% to reach 256,000 in 2018 from 156,000 in 2014 .The distribution of the individual wealth in India is mainly biased towards the metros with Mumbai and Delhi being home to over 70% of the ultra high net-worth Individuals population.



The individual wealth in financial assets witnessed an increase of 10.96% and grew to ₹262 lakh crore in FY19 as compared to ₹236 lakh crore in FY18. The top five avenues for investment were direct equity, fixed deposits, insurance, saving accounts and cash with a total of 72.33% contribution in overall financial assets, the report observed.



In FY19, investments in direct equity rose 6.39% despite volatility in market while bank deposits saw a stable growth of 8.85%. Mutual funds as an investment vehicle has gained traction which is evident from higher systematic investment plans (SIP) flows and an exponential increase in AUM size, which stood as a cushion for the capital markets. The data shows that there is a net inflow of Rs 392,693 crore in MFs through SIPs which is a 38% increase when compared to FY18.



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