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High Net-Worth Individuals
Context:
According to The Capgemini Research Institute’s World Wealth Report 2024, the count of high net-worth individuals (HNWIs) in India surged by 12.2% in 2023 compared to the previous year, elevating the total HNWI population to 3.589 million.
Key Finding of the Report:
- Global HNWI wealth increased by 4.7% in 2023, reaching $86.8 trillion.
- The HNWI population grew by 5.1%, totaling 22.8 million worldwide, continuing its growth despite market unpredictability.
- This growth reverses last year’s decline, returning HNWI trends to a positive trajectory.
- Market buoyancy in 2023 contributed significantly to a $3.8 trillion increase in HNWI wealth.
- India and Australia stood out as top performers in the Asia-Pacific (APAC) region, with HNWI wealth growth.
- India’s unemployment rate decreased to 3.1% in 2023 from 7% in 2022, despite the economy growing by 7.3%, higher than the increase in 2022.
- India’s market capitalisation surged by 29.0% in 2023, following a 6% increase in 2022.
- National savings as a percentage of GDP in India also saw an increase, reaching 33.4% in 2023 compared to 29.9% in 2022.
Buoyant Market:
- Buoyant is a term used to describe a market where the prices generally rise with ease when there are considerable signals of strength.
- Buoyant markets usually display characteristics of high corporate profits, low cost of capital, and a high return on capital.
Buoyant Economy:
- A buoyant economy is one in which most people feel that their economic circumstances are more secure and that their incomes are increasing. The measurable attributes of a buoyant economy include:
- real per capita incomes are rising;
- employment is rising and unemployment rates are falling, or there is full employment;
- the distribution of income is growing more equitable, or is stable; and
- levels of domestic and foreign debt (relative to GDP) are declining, or are stable.
What Is a High-Net-Worth Individual (HNWI)?
- HNWIs are the individuals with investable assets of USD1 million or more, excluding their primary residence, collectibles, consumables, and consumer durables.
- HNWIs are segmented into three categories based on wealth bands:
- Ultra-HNWIs (USD 30 million or more),
- Mid-Tier Millionaires (USD 5-30 million) and,
- Millionaires Next Door (USD 1-5 million).
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World Wealth Report 2024:
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