stock market as an option for hnwi(ppt)

8/9/2019 Stock Market as an option for HNWI(ppt)

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Stock Market As AnInvestment Option For HNWI


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CONTENTS

Who Are HNWI

Financial Needs Of HNWI

Trends Of HNWI

Population OF HNWI In India

Investment Options For HNWI

Comparison Between Investment Options

About Stock Market

References


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Who Are HNWI?

Source: Guideline Analysis

Mass

Mass Affluent

HNW

UHNW

Individuals with 100K-1Min liquid financial assets

Individuals with less than100K in liquid financialassets

Individuals with 1M-10M in liquid financialassets

Ultra High Net Worth Individuals10M+ in liquid financial assets


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Wealth-Creation Wealth-Preservation

CreditInvest-

ment

Planning Protection Tax-

Planning

Financial Need Of HNWI


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0

50000

100000

150000

Years

05 06 07 08 09

No. Of

HNWI

(in

000s)

Population OF HNWI In India


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Investment Options

Gold

Real

Estate

CashDeposite

StockMarket

Others

Art

Types Of Investment Options


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Investmentoptions

Rate ofreturn

Rate ofreturn

Risk Marketability TaxBenefit

Convenience

AnnualIncome

CapitalAppreciati

on

Equity Low High High High Yes High

Bank deposits Low Nil Low High Yes High

Mutual funds

Growth/equity Low High High High Yes High

Income/debt High Low Low High Yes High

Real estate Low High Low Low Limited Average

Gold/silver Nil Average Average Average Nil Average

Comparison Between Different Investment

Option


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Fixed income

18%

Real estate

23%

equity

36%

Alternative

investments

8%Cash/

deposites

15%

Investment Proportion Of HNWI


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What Is Stock Market

Market for the trading of company stock/shares, and derivatives.

This includes securities listed on a stockexchange as well as those only tradedprivately.

Market is a place where buyers and sellers

of securities can enter into transactions topurchase and sell shares, bonds, debenturesetc.


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Types Of Stock Market

Primary Market- IPO- FPO

- Right Issue- Prefential Issue

Secondary Market

-Equity-Debt-Derivatives


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Risk Volatility

Re

t

u

r

n

Short term deposits

Bonds

Property

Shares

Why HNIs go for Stock Market


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Returns from stock market

- Primary Market

Company Issue date Closing

date

Issue price LTP HNI

subscription (times)

UBI 23rd Feb 1025th Feb 10 66 73.30 39.15

ARSS 8th Feb 10 11th Feb 10 450 1210 124.53

Mahidraholidays

23rd June09

26th June09

300 522.20 11.01

Oil India 7th Sep 09 10th Sep 09 1050 1150 10.48
http://return%20table.xls/http://return%20table.xls/


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Returns From Secondary Market

Company 52-Week High 52-Week Low

UBI 77 66.10

ARSS 1272.50 630

Mahindra

Holidays

573.80 306.65

Oil India 1374 1090


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Conclusion

HNI prefer high risk and highreward.

The fundamentals of equity marketare good and so they have notmoved away from equities.

But a question still arises that

whether this inclination will besustainable or not?


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REFERENCES

http://www.fairloanrate.com/2009/09/22/what-do-you-u

http://ezinearticles.com/?5-Factors-To-Consider-When-In

http://www.marketcolorz.com/government/india-china-h http://www.us.capgemini.com/worldwealthreport09/wwr

http://india.smetoolkit.org/india/en/content/en/36228/H

http://www.greekshares.com/orderbook.php- http://www.thenetfool.com

/reasons-to-invest-in-stocks/
http://www.fairloanrate.com/2009/09/22/what-do-you-understand-by-the-term-hnwi/http://ezinearticles.com/?5-Factors-To-Consider-When-Investing-For-Passive-Income&id=475786http://www.marketcolorz.com/government/india-china-hnwis-to-treble-by-2018/http://www.us.capgemini.com/worldwealthreport09/wwr09_InvPassion.asphttp://india.smetoolkit.org/india/en/content/en/36228/High-Networth-Individuals-Yashashree-Kulkarnihttp://www.greekshares.com/orderbook.php-http://www.thenetfool.com/reasons-to-invest-in-stocks/http://www.thenetfool.com/reasons-to-invest-in-stocks/http://www.thenetfool.com/reasons-to-invest-in-stocks/http://www.thenetfool.com/reasons-to-invest-in-stocks/http://www.thenetfool.com/reasons-to-invest-in-stocks/http://www.greekshares.com/orderbook.php-http://www.greekshares.com/orderbook.php-http://www.greekshares.com/orderbook.php-http://india.smetoolkit.org/india/en/content/en/36228/High-Networth-Individuals-Yashashree-Kulkarnihttp://www.us.capgemini.com/worldwealthreport09/wwr09_InvPassion.asphttp://www.marketcolorz.com/government/india-china-hnwis-to-treble-by-2018/http://ezinearticles.com/?5-Factors-To-Consider-When-Investing-For-Passive-Income&id=475786http://www.fairloanrate.com/2009/09/22/what-do-you-understand-by-the-term-hnwi/


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stock market as an option for hnwi(ppt)

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