Wealth in India: Sizing the Market Opportunity

1.1. The Indian wealth market will continue to expand strongly
1.2. Key findings
1.3. Critical success factors

2.1. Economic reforms are starting to pay off and drive growth
2.1.1. The Indian economy is on the up, albeit not without challenges
2.1.2. Growth in affluent individuals will be stronger over the next five years than the previous five
2.1.3. Affluent assets are forecast to record a CAGR of 13.0% to 2022
2.1.4. HNW individuals also hold notable assets in less liquid options, particularly property
2.2. Offshore investments account for just over 16% of total HNW assets
2.2.1. Property and equities account for the majority of offshore investments
2.2.2. Tax efficiency is a key driver of offshore investment, but authorities are tightening the net
2.2.3. India plays an active role in global tax transparency efforts, having signed tax information exchange agreements and double taxation conventions with many offshore centers

3.1. Retail savings and investments will record a CAGR of 13.0% to 2022
3.1.1. The strong investment component of the market will aid growth
3.1.2. Mutual funds and equities are set to experience the strongest future growth
3.2. Retail deposit growth dropped sharply in 2017, but will pick up going forward
3.2.1. Inflows have plunged following the demonetization-driven surge in 2016
3.2.2. Financial inclusion levels are improving significantly, but the country still has a large unbanked population
3.3. Equities growth will be strong, but slower than the previous five years
3.3.1. A stellar 2017 buoyed equity holdings, but 2018 is proving much more turbulent
3.3.2. The possibility of caps being introduced on retail investor equity exposure could have a notable impact on direct holdings
3.4. Mutual funds are experiencing strong growth
3.4.1. Significant investor education and reductions in charges will help boost inflows
3.4.2. The mixed allocation of funds buffers their performance from the extremes of the stock market
3.5. Retail bond holdings will increase, but they will remain a peripheral investment
3.5.1. 2017 and 2018 have seen renewed interest in direct bond holdings

4.1. Non-resident holdings are dominated by NRIs
4.1.1. NRIs hold a notable proportion of onshore assets
4.1.2. Non-resident holdings accounted for 6.9% of deposits and 4.0% of funds in 2017
4.1.3. ADRs and GDRs offer alternative options for exposure to the Indian market

5.1. Abbreviations and acronyms
5.2. Supplementary data
5.3. Definitions
5.3.1. ADR
5.3.2. Affluent
5.3.3. Domicile
5.3.4. Double taxation convention
5.3.5. Emerging affluent
5.3.6. Exchange of information
5.3.7. FATCA
5.3.8. GDR
5.3.9. HNW
5.3.10. Liquid assets
5.3.11. Mass affluent
5.3.12. Mass market
5.3.13. Onshore
5.3.14. Residency
5.3.15. Tax information exchange agreements
5.4. Methodology
5.4.1. 2018 Global Wealth Managers Survey
5.4.2. Retail Investments Analytics
5.4.3. Technical aspects of the forecasting model
5.4.4. Global Wealth Model
5.4.5. Total HNW Wealth Analytics
5.4.6. Exchange rates
5.5. Bibliography
5.6. Further reading

Table 1: Number of adults in India segmented by asset band (000s), 2006-11
Table 2: Number of adults in India segmented by asset band (000s), 2012-17
Table 3: Number of adults in India segmented by asset band (000s), 2018f-22f
Table 4: Retail liquid assets in India segmented by asset band ($m), 2006-11
Table 5: Retail liquid assets in Denmark segmented by asset band ($m), 2012-17
Table 6: Retail liquid assets in Denmark segmented by asset band ($m), 2018f-22f
Table 7: US dollar exchange rates with the Indian rupee

Figure 1: India’s affluent population represents just 0.8% of the total population
Figure 2: Growth in liquid assets will be strongest among the HNW segment
Figure 3: Indian HNW individuals hold over a third of their wealth in illiquid assets
Figure 4: Offshore holdings by Indian HNW individuals account for 16.2% of their total portfolio
Figure 5: India was part of the early adopter group for the OECD’s CRS
Figure 6: Deposits and equities are the key components of India’s retail savings and investments market
Figure 7: Mutual funds are set to record the strongest growth through to 2022
Figure 8: Deposit growth has dropped following the demonetization-driven surge
Figure 9: A stellar 2017 on the Indian stock market saw strong performance growth in retail equity holdings
Figure 10: A third of companies included in the BSE 500 index operate in the finance sector
Figure 11: Mutual funds have been boosted by an uptick in inflows from 2015 onward
Figure 12: Fixed-income and equity funds dominate the Indian mutual fund market
Figure 13: Direct bond investments attracted inflows for the first time in five years in 2018
Figure 14: Non-resident holdings in deposits and mutual funds are limited, but growing
Figure 15: Example of a four-input forecasting process 40