Indian economy’s attractiveness to foreign brands and investors is justified yet again. According to Kotak Wealth Management’s (KWM) report titled Top of the Pyramid 2016, the number of ultra high networth households (UHNH) increased 7 per cent in FY16 to 1.46 lakh and their total networth rose 5 per cent to ₹135 lakh crore.

According to KWM, an UHNH is one having investible surplus of minimum ₹25 crore. The number of UHNH and their networth has witnessed compounded annual growth rates of 16 per cent and 18 per cent in the last five years, which is surprising given economic growth having remained stuck in a band during this period.

Kotak sees the number of UHNH doubling to 2.94 lakh and their networth more than doubling to ₹319 lakh crore by FY21.

Interestingly, the average age of an ultra high networth individual is reducing and a substantial proportion of UHNH is based out of emerging cities and small towns.

“Nearly half of the ultra HNIs are below 40 years of age. Forty five per cent of the UHNHs are from cities such as Bengaluru, Ahmedabad, Pune, Hyderabad, Nagpur, Ludhiana, Chandigarh and Aurangabad, among others,” the report said.

Top of the Pyramid 2016 has been prepared through interactions with over 225 ultra HNIs across 12 Indian cities.

Equity leads Among various asset classes, equity had the largest share at 39 per cent in the total investments made by ultra HNIs.

Wearables (smart watches, fitness bands, virtual reality headsets,etc), jewellery and apparel continue to remain top-spending categories.

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