Wealth Creation in 2018: A Reflection

The paradigm shift in the thought process and maturity of the Indian investors is clearly portrayed in the ninth edition of Karvy Private Wealth’s, ‘India Wealth Report’. Shying away from the physical assets and moving towards financial assets like direct equity, mutual funds and insurance is a visibly clear trend which is going to gather steam in future. Financial assets have shown higher double digit wealth growth and now constitute 60.22 per cent of the total individual wealth in India. The proportion of direct equity in individual financial assets increased to 20.72 per cent, thus becoming the most preferred asset class in Financial Year (FY) 2018. We estimate a compounded annual growth rate of 16.99 per cent over the next five years for financial assets, and higher single digit growth rate for the physical assets. Investments in financial assets through mutual...