INDIA WEALTH REPORT

2014Reforming to Perform

Is your wealth favourably aligned to the overall Indian & Global Trends?

FDI

Volume 5 FOR PRIVATE CIRCULATION ONLY December 2014

Foreword

Sunil Mishra

Karvy Private Wealth

Contents

List of Tables

1

Executive Summary

2

Global Individual Wealth

to 20121

2

3

Individual Wealth in India

`

``

Table 1: Total Individual Wealth in India 2014

Asset Type FY14 (` Cr.) Proportion (%)

Physical

Total 2,57,41,664 100.00

3

Assets

Asset Type Amount (` Cr.) Proportion (%)

Cash

Total 1,34,71,160 100.00

` `

Figure 1: Asset-Wise Distribution of Individual Wealth in India (Financial Assets)

Fixed Depositsand Bonds

21.82%

Equity19.79%

Insurance16.43%

Saving Deposits12.09%

Cash9.66%

Provident Fund5.46%

NRI Deposits4.62%

Small Savings4.30%

Mutual Funds2.92%

Current Deposits2.29%

Pension Funds0.36%

Alternative Assets0.18%

International Financial Assets

0.09%

4

Asset Type Amount (` Cr.) Proportion (%)

Real Estate

Total 1,22,70,501 100.00

Figure 2: Assets Wise Distribution of Individual Wealth in India (Physical Assets)

``

`

Classes Amount (` Cr.) Proportion (%)

Real Estate Total 2,57,41,661 100.00

Gold 50.96%Real Estate

41.07%

Diamond6.33%

Silver1.59%

Platinum0.05%

5

Section 1:

Global Individual Wealth

4

5

Figure 3: Global Individual Financial Wealth

0.020.040.060.080.0

100.0120.0140.0160.0180.0200.0

2010 2011 2012 2013 2018E

121.4 122.0132.7

152.0

198.2

USD

Tril

lions

th

Figure 4: Figure 5:

Number of HNIs Globally Global HNI Wealth Allocation

Africa1%

Latin America4% Middle East4%

Europe28%

Asia-Pacific31%

North America32%

Africa2% Latin america

4%

Middle East15%

Europe24%

Asia-Pacific27%

North America28%

Figure 6: Forecast of Global HNI Financial Wealth

Global (%)

Real Estate

Total 100.00

Source: World Wealth Report 2014, Page 9, Figure 6, Capegemini and RBC Wealth Management

Section 2:

Indian Economic Scenario

10

11

12

10

Section 3:

Individual Wealth in India

`

``

Table 6: Total Individual Wealth in India in 2014

Asset Type FY14 (` Cr.) Proportion (%)

Physical

Total 2,57,41,661 100.00

Figure 8: Compostion of Indian Individual Wealth

Financial 52%

Physical48%

11

Section 4:Asset wise break up of Individual Wealth held in Financial Assets

`

4.1 Fixed Deposits & Bonds

Bank Fixed Deposits:

`

` 13

sectors14

Individual Wealth held in Bank FDs stands at `27.91 Lakh Crore in FY14 and has grown by

Cash

12

Table 7: Composition of Individual Wealth in Bank Fixed Deposits

Bank Category Amount (` Cr.) YOY Change (%)

Total 27,91,256 17.14

Corporate Fixed Deposits:

The Individual Wealth in Corporate Fixed Deposits in the FY14 is about `67,676 Crore a

NBFC Deposits:

(i) N(ii)

Types of NBFCs FY13 (` Cr.) FY14 (` Cr.)

Total Individual Deposits

13

Bonds and Debentures:

st

` `of 66.41% over the FY13.

PSU Bonds: ` st

The estimated individual wealth in these bonds is `54,300 Crore.

Corporate Bonds: `

is `13,637 Crore.

Bank FDs97%

Corporate FDs2%

NBFC Deposits1%

Figure 9:Composition of Individual Wealth in Fixed Deposits

14

Table 9: Composition of total and Individual Wealth in Bonds and Debentures

Individual Wealth in FY13 (` Cr.)

Individual Wealth in FY14 (` Cr.)

YOY Change (%)

Total 67,937 66.41

st st

` `th

`

`

Investors % of Market Capitalization Amount (` Cr.)5033

Total 100 72,77,719

`26.6 Lakh Crore.

`

15

20 ``

`22.12 Lakh Crore.

FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)

22,12,654

`

`

` `

`

4.4 Saving Deposits

`

Savings Bank Deposits:The Individual wealth in Savings Deposits stands at ` st2014, marking a growth of 7.96% over FY13.

21

Table 12: Composition of Individual Wealth in Bank Savings Deposits

Bank Category Amount (` Cr.)

Total

Current Bank Deposits:

The Individual wealth in Current Deposits stands at `

Table 13: Composition of Individual Wealth in Current Bank Deposits

Bank Category Amount (` Cr.)

Total

Table 14: Composition of Individual Wealth in different types of Bank Deposits

Type of Deposits FY14 (` Cr.) FY13 (` Cr.) YOY Change (%)

Deposits (Current, Savings and Term Deposits)

22

st

gion-Wise Distribution of Individual Wealth held in Deposits with SCBs

Amount (` Cr.) Proportion (%)24

North 221514

West 232

Figure 11: Household Bank Deposits

Rural10% Semi-Urban

14%

Urban/Metropolitan

76%

Figure 10:

Distribution of Depositsaccording to area

0.00

100000.00

200000.00

300000.00

400000.00

500000.00

600000.00

700000.00

` Cr

ore CURRENT

SAVINGS

TERM

4.5 Cash

The table shows that as on 31st `13 Lakh Crore worth

Table 16: Individual Wealth in Cash

Year Amount (` Cr.) YOY Growth (%)20142013201220112010

Figure 12: Cash held by Individuals

4.6 Provident Fund

`4.74 Lakh Crore.

0

200000

400000

600000

800000

1000000

1200000

1400000

2010 2011 2012 2013 2014

` Cr

ore

Table 17: Assets In Provident Fund

Composition of PF FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)23

Total 7,36,096 5,24,300 40.39

The individual wealth in provident funds is `7.36 Lakh Crore with 40.39% YOY growth.

st `6,22,33724 Crore. The

Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)

NRENROTotal 6,22,337

20

The Individual Wealth in Small Savings stands at `

Table 19: Individual Wealth held in Small Savings

Type FY14 (` Cr.) FY13 (` Cr.) YOY Change (%)

Total 5,65,016 2.45

4.9 Mutual Funds

25

``

21

30

The total Individual Wealth in Mutual Funds stood at `3.93 Lakh Crore up from `3.49 Lakh Crore in FY13.

Table 20: Mutual Funds based on underlying Investment by Individual Investor

Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)

Debt

Total 3,93,140 349,749 12.40

4.10 Pension Funds

st

• • • • • • •

As on 31stManagement) of ` 31 Crore.

31 PFRDA

22

4.11 Alternative Assets

Category Sub-Categories

st

` 32

` 33 The

to be `23,727 Crore in FY14.

Table 21: Composition of Individual Wealth in Alternative Assets

Asset Class Amount (` Cr.) Proportion (%)

12114

Total 23,727 100.00

23

High Yield Debt:

34

`6,162 Crore.

`

`5,279

35

` `

` 37 Crore as against `

`

24

`

`2,309 Crore

Hedge Funds:

` The `

over FY13.

Film Funds:

The individual wealth in these funds in the FY14 stands at `

25

`st

` 40 `121

Crore.

Venture Capital Funds:

`` 42 The individual wealth in these funds is estimated to be `14 Crore.

4.12 International Assets

Table 22: Individual Wealth in International Assets upto 2014

Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)

Total 12,659 43.02

``

Section 5:

Asset wise Break-Up of Individual Wealth held in Physical Assets in India

Real Estate

5.1 Gold

` 43

`

45

Table 23: Composition of Individual demand in terms of Jewelry and Bars and Coins Investment

Period Jewelry Bars and Coins Total Q1 FY14 122 310Q2 FY14Q3 FY14Q4 FY14

Source: World Gold Council

Figure 13: Quarterly Demand of Jewelry and Bars and Coins Investment

Table 24: Composition of Individual Demand in Gold (in tons)

FY13 FY14 YOY Change (%)

The total value of wealth in individual gold stands at ̀ 62.5 Lakh Crore up 3% from FY13.

188

104.7

150.7 145.6

122

43.5

68

44.7

0

20

40

60

80

100

120

140

160

180

200

Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14

Tonn

es

Jewelry

Bars and Coins

Overview and Market Size:

Investment through FDI route:

50

51

` `500 Crore

` `

` `

`

`

Type FY14 (` Cr.) FY13 (` Cr.) YOY Growth (%)

Total 46,09,510 9.32

`

5.3: Diamond

52

30

` 53

54

55 The Individual Wealth in Diamond is estimated at ` .

5.4: Silver

The total household wealth that is `1.9 Lakh Crore.

5.5: Platinum

` ` The total Individual Wealth in the form of Platinum stands at ` `3,466 Crore in FY13.

31

Section 6:

Individual Wealth-India versus World

Table 26: Individual Wealth-India versus World

India (%) Global (%)13 25

43

13

Real Estate 20Total 100 100

32

Section 7:

Survey on HNI Investment Behavior in India

Figure 15:Figure 14:

of wealth

Entrepreneurship31%

Inheritance11%

Work Benefits

58%

Change 46%Follow the

same51%

Not Applicable 3%

33

Figure 16:

Trend in Corporate FDs Investment Figure 17:Trend on investing in

Corporate FDs

48%52%

Yes No

Yes No

29%

71%

Figure 19:Investment in International

Yes No Never Invested

46%

31%

23%

Investment inAlternative asset

0%20%

40%60%

80%

Yes

No

64%

36%

34

Figure 20:

Equity38%

Debt39%

Physical Assets

16%

Alternative Assets 5%

International Assets 2%

Wealth Manager46%

Chartered Accountant

11%

Family32%

Peers11%

Figure 21:

35

Section 8:

Future of Indian Individual Wealth

`514 Lakh Crore in FY19 from `257 Lakh Crore

Asset Type FY19 (` Cr.) FY14 (` Cr.)

Physical

Total 2,57,41,664

`316

Financial Assets52%

Physical Assets48%

FY14

Financial Assets62%

Physical Assets38%

FY19

FY19

Asset Class FY14 (` Cr.) FY19 (` Cr.)

Cash

Total 1,34,71,160 3,16,74,990

TClass Wise Distribution in FY19

Asset FY19 (` Cr.) FY14 (` Cr.)

Real Estate

Total 1,22,70,504 10.0

Direct Equity35.24%

Insurance16.47%

FixedDeposits16.08%

Savings D;eposits 7.60%

Provident Fund 5.88%

Cash5.87%

Mutual Funds 3.85%

NRI Deposits3.61% Small Savings

2.87%

Current Deposits1.22%

Bonds0.49%

Pension Funds0.38%

Alternative Assets 0.30%

International Assets0.13%

`

Future Trends

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