rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Inflation, faltering growth hitting the rich

Inflation, faltering growth hitting the rich

Last updated on: October 13, 2011 16:04 IST

Inflation, faltering growth hitting the rich

     Next

Next

The rise in the toasted category of high networth individuals in the country is getting affected in the 'high inflation, slow growth' scenario being witnessed at present, a top official of Merrill Lynch Wealth Management said in Mumbai on Thursday.

"Inflation does impact high networth individuals as the purchasing power comes down.

Also, the growth rate will come down due to higher inflation which will definitely have an impact on HNIs," its chairman for global wealth management Pradeep Dokania told reporters.

Click NEXT to read further. . .


Image: A vegetable vendor.
Photographs: Dipak Chakraborty
     Next

Inflation, faltering growth hitting the rich

Prev     Next
Prev

Next

The subsidiary of Bank of America has scaled down its FY 12 gross domestic product growth forecast for the country to 7.3 per cent from 8 per cent at the beginning of this fiscal, he said.

Dokania said compounding the troubles for the segment, which has been steadily rising over the past decade with high growth, is the volatility in the equity markets which serves both as an asset class for investing as well as accounts for wealth in case of promoter HNIs.

Click NEXT to read further. . .



Prev     Next

Inflation, faltering growth hitting the rich

Prev     Next
Prev

Next

"If the stock market is down 20-25 per cent, as it is this year, it will negatively impact HNIs," he added.

In its Asia-Pacific Wealth Report for 2011, it found that 36 per cent of investible wealth was allocated to equities in 2010.

In 2009-10, the country's HNIs' wealth grew 22 per cent to $582 billion on a 9.1 percent GDP growth, 24 per cent increase in market capitalisation and a growth in national

savings rate, the report said.

Click NEXT to read further. . .


Image: A woman displays a Rs 1,000 note.
Photographs: Savita Kirloskar/Reuters
Prev     Next

Inflation, faltering growth hitting the rich

Prev     More
Prev

More

Given the steady rise in HNIs' over the years, a slew of financial institutions have started wealth management practices.
A majority of them came out with research and studies on rise in HNIs and changes in investing patterns.

Merrill Lynch Wealth Management's managing director Atul Singh said given the uncertainty in equity markets, HNIs are not so confident about investing in equities now, while fixed income is a more preferred category.

Real estate has not seen a fall while gold is also witnessing interest as a good alternative, he said.

 



Prev     More
© Copyright 2018 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.