Equity is the most preferred asset class by HNIs and UHNIs: Report

Interestingly, HNIs and UHNIs over the age of 60 were found to be less worried than the younger generation that is yet to reach 40 years of age

Equity is the most preferred asset class for high net worth individuals (HNIs) and ultra high net worth individuals (UHNIs), a survey by 360 ONE Wealth and CRISIL revealed. About 39 per cent of respondents chose equity as their top choice, followed by debt and real estate at 20 per cent each.

 

The survey of 388 HNIs and UHNIs found that 69 per cent of the respondents understand the equity market better, followed by fixed income (66 per cent) and real estate (41 per cent) with capital appreciation being the primary motive behind the investments. 

 

However, only 15 to 28 per cent of the surveyed HNIs and UHNIs said that they have equally better understanding levels of international investments through GIFT City, Large Value Funds (LVFs), Real Estate Investment Trusts (REITs), Infrastructure Investment Trusts (InvITs), and Market Linked Debentures (MLDs). 

 

 

Also, the survey revealed that 77 per cent of the respondents require professional assistance while making investment decisions, highlighting the key role of wealth advisors. About 30 per cent of the respondents preferred advisory services by paying a fee based on the assets under management (AUM). 

 

Moreover, the survey shows that about 90 per cent of the total respondents were concerned about the effect of external events on their wealth. However, HNIs and UHNIs over the age of 60 were found to be less worried than the younger generation that is yet to reach 40 years of age, “probably because living through market cycles makes one more resilient.” 

 

According to the report, 10 per cent of the respondents prefer gold as an asset as it acts as an optimal portfolio hedge. 

 

Furthermore, the survey found that about 41 per cent of respondents are keen to invest abroad, with UHNIs more interested to do so (51 per cent) than HNIs (30 per cent). 

 

Also, the survey stated that, accredited investors, investments through GIFT City are yet to take off. 

 

Additionally, 82 per cent of the respondents said that they were either currently engaged in philanthropy or plan to do so in the next two years. Meanwhile, about 70 per cent of the surveyed HNIs and UHNIs consider ESG (Environmental, Social, and Governance) as a critical part of their business.