Mumbai, the financial capital of India, has emerged as the most risk-averse among the top cities in Asia and Australia, according to a survey, conducted by HSBC India.
The survey, Asia's Prize Affluent New Symbols of Wealth, said 87 per cent of Mumbaiites prefer to invest in savings plans, while 35 per cent of consider investing in children's education as a major avenue to wealth growth.
Mumbai also emerged as the most-confident about knowledge and skills in growing wealth.
This survey was conducted among 2,500 mass affluent respondents in Mumbai, Hong Kong, Singapore, Shanghai and Sydney. The bank defined 'mass affluent' as the top 20 per cent of income population and white-collar supervisory role with at least college education.
More than 73 per cent Mumbaiites, Hong Kong (73 per cent) and Sydney (84 per cent) consider cash and liquid assets as top symbols of wealth. Real estate is the next most prevalent expression of wealth in these markets.
Expression of tangible wealth such as owning cars, vehicles, jewellery, watches and collection of luxury brands is strong in Mumbai and Sydney.
"Asia's affluents' desire to own a business, get best education for children and retire with wealth require a robust wealth management strategy. However, there is a huge knowledge gap when it comes to financial planning, investment diversification and market information. Fast-growing markets need to temper optimism with realistic expectations on returns and wealth prospects, said Nicholas Winsor, HSBC India's head of personal financial services.
Affluents from Mumbai, Singapore and Hong Kong are motivated to grow their wealth so that they can provide a comfortable life for their family. While Shanghai's affluent grow their wealth to support their children's education and Sydney's respondents work to live a desirable lifestyle.
"Asia's affluent are growing their wealth to support children's education and their parents, pay off mortgages or buy houses. These are common findings across economies in their early stages of economic growth. While in developed economies such as Hong Kong, Singapore, Sydney the key motivator for wealth growth is preparing for retirement," added Nicholas.
