Majority of Indians in lowest wealth group: BCG

‘Those with less than $1 lakh net worth hold 55% of wealth’

Asset mix: Investment in equities, funds will see the most growth, according to the report.

A new report shows that 55% of the total wealth in the country is with those having less than $1,00,000 net worth. In contrast, only 18% of the global wealth is with those in this category.

The Boston Consulting Group’s (BCG’s) Global Wealth Report 2018 also shows that those with more than $1 billion in personal wealth, have cornered 16% of total wealth in India. This is the second largest category under the wealth distribution head.

Personal wealth growth

The report goes on to estimate that personal wealth grew at 12% from 2017 to 2018 in India, compared with 15% in the previous year. Overall, the report estimates a 13% CAGR (compounded annual growth rate) from 2017 to 2022. This matches with the growth rate in Asia (excluding Japan) for the same period, but is much faster than the 7% growth in personal wealth estimated for the world. The character of personal wealth in India is also slowly changing, according to the report. While investable wealth — listed equity, bonds, investment funds, currency and deposits and other smaller asset classes — accounted for 64% of total personal wealth in 2012, this proportion is expected to increase to 70% by 2022.

Further, the category that has and will see most growth is investment in equities and investment funds, the report showed.

While this category made up 17% of the personal wealth in 2012, it increased to 22% in 2017, and is expected to further increase to 32% by 2022.