India's wealthiest households are set to get even richer, with their growing financial assets creating massive opportunities for wealth management firms. According to a recent report by Bernstein, India's wealth managers are witnessing robust growth, driven by rising demand from the country's uber-rich.
These firms, which cater to the top 1 per cent of Indian households, are delivering more than 20 per cent profit growth and 20 per cent return on equity (RoE). It stated "India's uber-rich are only going to get richer. The top 1 per cent households (the uber-rich) in India control approx. USD 11.6 Tn in total assets, of which approx. USD 2.7 Tn are in liquid financial assets that wealth managers can service".
The report highlighted that these liquid assets include bank deposits and non-promoter equity holdings. Indian households are gradually shifting more of their incremental savings and wealth into financial assets, boosting the addressable market for wealth managers. The boom in India's capital markets is also contributing to this trend. The ultra-rich are converting their illiquid promoter holdings into liquid financial wealth through IPOs, stake sales, and block deals.
The report stated "The uber-rich are cashing in on the capital market boom, converting illiquid promoter holdings to liquid financial wealth through IPOs, stake sales and blocks". -- ANI