India's richest park their wealth mainly in real estate, gold
What's the story
A recent report by Bernstein has revealed that a major chunk of India's wealthiest citizens' assets is invested in real estate and gold. The study defines this elite group as the 'Uber Rich,' which includes Ultra High Net Worth Individuals (UHNI), High Net Worth Individuals (HNI), and the Affluent class. Together, these groups account for just 1% of Indian households but control nearly 60% of the country's total assets and 70% of its financial assets.
Wealth distribution
Financial assets and serviceable investments
India's total household wealth is estimated at $19.6 trillion, with the Uber Rich controlling a whopping $11.6 trillion (59%). However, only $2.7 trillion of this is invested in serviceable financial assets such as mutual funds, equities, insurance, and bank or government deposits. The rest, about $8.9 trillion, is tied up in non-serviceable assets like physical real estate, gold, and cash holdings.
Market potential
Wealth management opportunities in India
The Bernstein report highlights a major business opportunity for wealth managers and investment advisors in India, especially as the affluent class starts diversifying away from traditional investments. Despite their financial wealth, this segment remains largely underpenetrated by formal wealth management services, with a large portion of their assets still unmanaged.
Inequality analysis
Wealth inequality in India
The Bernstein report also highlights a broader structural trend in India: high wealth inequality. "The top 1% earns 40% of all income, while the 'Rest of India' holds only a small fraction of both income and assets," it said. This disparity is even more pronounced than income inequality, with the Uber Rich controlling $4.5 trillion in financial assets.