Indian wealth markets are expected to grow by at least 17 per cent annually for the next three years, predicted a survey conducted by Barclays Capital on the world's leading wealth managers. The two other economies that wealth managers are bullish on are China and Korea.
Wealth management firms with approximately $3 trillion assets under management, predict that over the next three years, they foresee management of an estimated $334 billion of assets for the Korean clients, while for Indian clients it was $256 billion and for Chinese clients it was $150 billion.
However the order gets reversed for the mass affluent market. China is expected to lead this segment with an estimated $93 billion, followed by Korea and India, with assets worth $50 billion each.
"The wealth management markets in Asia look strong for the years ahead and are a key focus for Barclays," said Peter Hu, head of investor solutions, non-Japan Asia, at Barclays Capital.
He further added that with the investor solutions team doubling in size in the past year, it would continue to grow in the years ahead, particularly as investors and wealth managers increasingly look for tailor-made investment solutions.
Highlighting preferences of investor classes, the survey concluded that equity is the preferred asset class for high net worth individuals, which is followed by credit or debt-related products.
The survey pointed out that commodities remained one of the highly derivatised asset classes in both the high net worth and mass affluent segments. However, foreign exchange retains the most significant share in the high net worth segment.
Survey respondents forecasted a double-digit growth rate in AUM across the region, with India and Korea at one end of the expected range with 17 per cent growth each and Australia and New Zealand at the other end with 10 per cent.
China, on the other hand is expected to grow annually by 14 per cent, South East Asia and Taiwan by 13 per cent, and Hong Kong by 11 per cent.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
