Latest news with #HNIs
Time of India
2 hours ago
- Business
- Time of India
Why are HNIs in India struggling to save and invest wisely?
Tired of too many ads? Remove Ads Mumbai: Many high-net-worth individuals (HNIs) in India may be falling short of meeting their financial goals , according to a survey conducted by Marcellus Investment Managers and Dun & survey, conducted in February-March 2025, covering 465 respondents across metros and tier 1 and 2 cities, all with post-tax household incomes of over ₹20 lakh per annum, said these affluent individuals might not be saving 43% of HNIs surveyed save less than 20% of their post-tax income, HNIs face challenges in achieving their goals because of low investment returns , lack of savings discipline , poor understanding of investment options and high debt in 10 respondents have at least one open loan. While real estate dominates portfolios - with half allocating more than 20% of their wealth to it, excluding their primary residence - only one in three HNIs has more than 20% allocated to equities. The survey said 14% of respondents have no emergency funds at all. Three-quarters of HNIs are saving for children's education and marriage, while 40% aspire to start a business or buy a house. An equal number hope to retire the survey, 30% of respondents said they are not very comfortable investing in equities. Global diversification is still limited. While 21% have begun investing overseas, nearly a quarter say they are unfamiliar with the concept. Trust in financial advice is also shaky. While 87% of HNIs rely on external help such as wealth advisors, chartered accountants, family or friends, stockbrokers and bank relationship managers for investment decisions, two-thirds are dissatisfied with the advice they receive.
Economic Times
2 hours ago
- Business
- Economic Times
Why are HNIs in India struggling to save and invest wisely?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Many high-net-worth individuals (HNIs) in India may be falling short of meeting their financial goals , according to a survey conducted by Marcellus Investment Managers and Dun & survey, conducted in February-March 2025, covering 465 respondents across metros and tier 1 and 2 cities, all with post-tax household incomes of over ₹20 lakh per annum, said these affluent individuals might not be saving 43% of HNIs surveyed save less than 20% of their post-tax income, HNIs face challenges in achieving their goals because of low investment returns , lack of savings discipline , poor understanding of investment options and high debt in 10 respondents have at least one open loan. While real estate dominates portfolios - with half allocating more than 20% of their wealth to it, excluding their primary residence - only one in three HNIs has more than 20% allocated to equities. The survey said 14% of respondents have no emergency funds at all. Three-quarters of HNIs are saving for children's education and marriage, while 40% aspire to start a business or buy a house. An equal number hope to retire the survey, 30% of respondents said they are not very comfortable investing in equities. Global diversification is still limited. While 21% have begun investing overseas, nearly a quarter say they are unfamiliar with the concept. Trust in financial advice is also shaky. While 87% of HNIs rely on external help such as wealth advisors, chartered accountants, family or friends, stockbrokers and bank relationship managers for investment decisions, two-thirds are dissatisfied with the advice they receive.
New Indian Express
4 hours ago
- Business
- New Indian Express
Many high-net-worth individuals fall short of savings goals despite high incomes, reveals survey
A large percentage of high-net-worth individuals (HNIs) are not saving enough to achieve their financial goals, as per a survey by Marcellus Investment Managers. The survey highlighted that 43% of high HNIs save less than 20% of their post-tax income, while 14% do not maintain an emergency fund. Giving an example, the survey highlighted that a 44-year-old banking professional working in Mumbai only manages to save Rs 5 lakh per annum despite pocketing Rs 50 lakh as bulk as his/her income goes towards EMIs and children's education. Saurabh Mukherjea, Co-Founder, Marcellus Investment Managers, said that affluent Indians are living in a world of high aspirations and low savings, compounded by illiquid, tax-inefficient portfolios. He stated that without a clear financial roadmap and disciplined investing, their goals will remain out of reach. The survey said that HNIs prefer real estate more over other asset classes. More than half of the respondents have over 20% of their assets in property, even excluding their primary residence. Only 1/3rd of the respondents have more than 20% equity allocation.
India.com
8 hours ago
- Business
- India.com
Rs 400 crore, Rs 600 crore, Rs 1000 crore...: Rich Indians are buying luxury properties across India due to...
Representational Image/File From lavish bungalows in the Mumbai's upscale Malabar Hill to expensive apartments in Lutyens, Delhi, the sale and purchase of luxury real estate by India's ultra rich has increased at a rapid pace in recent times. According to a report by the Economic Times, Leena Gandhi Tewari, the chairperson of pharmaceutical giant USV Private Limited, recently purchased two duplex flats, with a combined area of 22,572 square feet, in Mumbai's Worli for Rs 635 crore. The deal is being touted as the most expensive in India, with each square foot of space costing a whopping Rs 2.83 lakh, as per the report. Additionally, the Kotak family has bought an entire sea-facing building in Mumbai for Rs 628 crore, while DMart owner Radhakishan Damani purchased a vintage bungalow in the posh Malabar Hill area for a staggering Rs 1000 crore. Why India's ultra rich are investing in luxury real estate? As per experts, there are a multitude of factors responsible for the country's uber-rich deciding to invest in luxury real estate, such as the rising demand in the real estate market for luxury homes. However, the number of such properties is still relatively compared to the demand, especially in highly-sought areas like Lutyens, Delhi, Mumbai's Worli, and Golf Course Road in Gurugram. This unequal demand and supply scenario in the luxury real estate market has resulted in prices of these properties skyrocketing in recent times, which can be gauged from the fact the Leena Tewari paid a record Rs 2.83 lakh per square feet for her duplex apartments in Mumbai, while one square feet at Gurugram's DLF Camellias costs around Rs 1.17 lakh. Notably, the ultra rich are not buying these properties for habitation, they plan to monetize them. As per reports, the Kotak family plans to rebuild the sea-facing building they recently purchased in Worli, and likely turn it into a luxury apartment building. Luxury real estate prices skyrocketing in Indian metros Luxury real estate prices in India metros and tier-I cities are surging at a rapid pace, with Mumbai, Bengaluru and Delhi ranked among 15 world cities where prices of luxury homes are increasing the fastest, as per a report by Knight Frank. Bengaluru ranks 4th on the list, followed by Mumbai at 5th, and Delhi at the 15th spot. According to market data, India's luxury home market grew by 28% in FY23-24, with Delhi-NCR topping the sales. Together, Bengaluru, Mumbai and Delhi-NCR accounted for 67% of the total investment in luxury real estate, showcasing these cities as major real estate hubs in the country. Notably, the number of high net worth individuals (HNIs) increased by 6% to 85,698 in 2024, and the number is expected to reach 93,753 by 2028, according to the Knight Frank Wealth Report 2024. The report noted that HNIs in India invested 32% of their wealth in real estate in 2024, while the figure was 25% in 2020.
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Business Standard
11 hours ago
- Business
- Business Standard
HNIs aim for early retirement but low savings, planning hold them back
High-networth individuals (HNIs) in India aspire for early retirement, entrepreneurship, and foreign education for children, but lower savings, lack of personalised planning, and financial discipline pose challenges to their plans, according to a survey by Marcellus Investment Managers and Dun & Bradstreet. The survey, which covered over 465 HNI households across 28 cities, shows that 43 per cent of HNIs save less than 20 per cent of their post-tax income. The saving rate is higher for the top income brackets within HNIs. Sixty-three per cent of HNI households with over ₹10 crore annual income save over 30 per cent of their earnings. "Only 17 per cent allocate more than 30 per cent to equities. Forty-four per cent of these households say they are 'very comfortable' with equity investing, but still 65 per cent of them exclusively allocate 10 per cent to 20 per cent to gold/silver and 48 per cent of them allocate more than 30 per cent to real estate," the report said. According to the study, most HNIs believe that professional financial planning is key to realising their goals. "Eighty-two per cent believe professional financial planning is key to achieving long-term financial goals. Fifty-one per cent HNIs seek more guidance on diversification. Thirty-two per cent seek goal planning, and 38 per cent seek personalised asset allocation tailored to their goals and risk," it added.
