Trust in equity the highest for investors in Punjab: Karvy’s India Wealth Report: Karvy Private Wealth, the wealth management arm of the leading financial-services conglomerate, Karvy Group, has revealed some interesting insights on the investment habits of individual investors in Punjab in the India Wealth Report 2019.
As per the report, which tracks down every rupee invested in every asset class, by every individual in India, individual investors in Punjab have placed their trust in equity the most.
Individual investors in Punjab have opted for a higher allocation to equity products in their mutual fund portfolio at 68.11%, as compared to the national average of 64%. Chandigarh, Ludhiana, Amritsar & Jalandhar have all recorded a higher equity share in total AUM than the national average.
Overall, mutual funds grew by a healthy 9.99% YoY in Chandigarh. This is in line with what was highlighted in the report; that tier-2 and tier-3 cities will be significant contributors to mutual fund AUM growth in the years ahead.
While equity seems to be the favorite asset class, keeping in mind the volatility in the markets, term deposits continue to remain a safe bet for investors. Overall growth rate in deposits is close to the national growth rate. Amongst the cities in Punjab, Chandigarh recorded the highest YoY growth at 12.12%, followed by Amritsar at 11.39%.
Commenting on the occasion, Mr. Abhijit Bhave, CEO, Karvy Private Wealth, said, “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through. We believe that India’s drive towards a USD 5tn economy will have a cascading positive effect on the individual wealth by 2024. We expect the HNI population to touch 1 million over the next five year.”
The report further stated that there would be a continued shift towards financial assets in India in the near future as well. Massive investment in Infrastructure and Green Energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pickup in consumption. Urban India will go hand in hand with the semi-urban and rural Bharat to achieve this feat.
Karvy Private Wealth is the Wealth management arm of Karvy Group providing exclusive and customised wealth management solutions to High net-worth individuals (HNIs) and families based on their specific needs. With the widest range of product offerings backed by industry’s finest brains, Karvy Private Wealth is a complete wealth management boutique.
This of course is built upon the strong belief of the Group of providing clear, unbiased and most appropriate investment solutions to our esteemed clients and prospects. Karvy Private Wealth is an open architecture firm at 2 levels – asset class level and product level, offering a comprehensive range of investment solutions across all asset classes including debt, equity, real estate and alternate assets.