KOTAK WEALTH MANAGEMENT LAUNCHES ‘TOP OF THE PYRAMID 2014’
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Wealth Management launched the fourth edition of it’s ‘Top of the Pyramid 2014’ report in Mumbai recently. The report, put together in conjunction with Ernst & Young (ENY), focused on the profiles, spending habits and investment patterns of Indian ultra High Net worth Individuals (HNI). According to the report, India is home t 117,000 ultra HNIs (individuals who earn Rs. 3-5 crores a month or have an investable surplus of Rs. 25 crores), of which the company interviewed 150 ultra HNIs, and witnessed among them an increase in expenditure on luxury travel.
Addressing the media in Mumbai at the unveiling of the report, Abizer Diwanji, Partner and National Leader, Financial Services, ENY revealed that the trend seen among this segment is that the holidays have become shorter but more frequent, and demand is high for adventure and experiential holidays.
According to C Jayaram, Joint Managing Director, Kotak Mahindra Bank, the economic scenario in India is different now to three months ago and there is now a low level of volatility in interest rates. The interest rates, he added, are unlikely to increase, and will ease off eventually and result in economic growth.
Murali Balaraman, Partner – Advisory Services, ENY said, “What we noted during the research was an increase in luxury spends and travel to exotic destinations. What struck us most was that this expenditure is not isolated to metros. 45 per cent of this demand comes from small and emerging cities. 33 per cent of the ultra HNIs in India spent over Rs. 25 lakhs on luxury travel in 2013, business class is the preferred mode of travel among them, and diving with sharks and glacial treks are among the activities gaining momentum.”
The research showed that shopping destinations are top priority while choosing a destination for travel (78 per cent), followed by beaches (44 per cent), hill stations (43 per cent), wildlife (33 per cent), cruises (31 per cent) and skiing (8 per cent). Singapore, Dubai and Europe are still among the most popular destinations for the Indian ultra HNIs. Luxury villas, space travel and polar expeditions are among the growing aspirations for travel.
“Spend on travel and spend patterns will see an uplift now that the Budget has been passed. In three years we expect to see the number of ultra HNIs in India to grow to 343,000 with a net worth of Rs. 408 trillion from the current 117,000 ultra HNI individuals with a net worth of Rs. 104 trillion,” opined Balaraman.