Wise Wealth Advisors

D.Muthukrishnan (Muthu), Certified Financial Planner- Personal Financial Advisor

  • Blog Stats

    • 870,588 hits
  • Enter your email address to follow this blog and receive notifications of new posts by email.

    Join 835 other followers

  • Follow me on Twitter

New Wealth Builders

Posted by Muthu on September 25, 2015

The Economist Intelligence Unit (EIU) has released a report recently. There is a new category of wealthy people identified as ‘New Wealth Builders’ (NWBs).

As per this report, high net worth (HNW) households are those holding financial assets worth more than $2 million (Rs.13 crores; throughout this piece, I’ve assumed $1=Rs.65). This is in addition to a primary residence.

New wealth Builders are those who have (in addition to primary residence), financial assets of $100,000 (Rs.65 lakhs) to $2 million (Rs.13 crores). This category has grown significantly over last 10 years and is expected to grow much in the years to come.

NWBs have created wealth through their profession or business during the last 10 years. Only a small portion (3%) has inherited wealth.

4.8 lakh households in India are classified as NWBs.

We’ve seen in earlier reports that around 2 lakh households in India have net worth of $1 million or more.

We’ve also seen that a household is considered rich if it has financial assets above $100,000 (Rs.65 lakhs) in addition to a primary residence.

There are 300 million households in India, out of which half a million households have wealth more than $100,000. So 0.16% of India is wealthy.

EIU projects India to have 4.9 million NWB households in 2020; with an average wealth of $178,000 (Rs.1.15 crore).

This is very significant as close to 2% of our households would become wealthy by 2020.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: