Comments
High net worth individuals in India invest less of their wealth in “treasure assets” than those from countries like Brazil, China and South Africa.
On average, they hold around three per cent of their wealth in the form of treasure like jewellery, classic automobiles, antique furniture, fine art pictures and paintings, according to a joint report by Ledbury Research and the Wealth and Investment Management Division of financial services provider Barclays.
For security
On an average, HNIs across the world held 10 per cent of their wealth in treasure assets.
The lower holdings of treasure assets in India can be attributed to the motivations for holding these assets, says the study.
Around 67 per cent of the HNIs from the country that purchased treasure assets said their motive was financial.
But globally, only 18 per cent of the treasure assets held by the rich were held for financial reasons.
Twenty-one per cent held them to provide security in case conventional assets failed.
Jewellery preferred
Ninety per cent of Indians felt that it is difficult to find treasure assets that will remain secure in terms of financial value.
This could be why HNIs from the country preferred jewellery more than paintings or other assets.
This mindset can be seen in the treasure asset that most Indians prefer to invest in – jewellery – with 98 per cent of HNI Indians stating that their treasure trove includes some jewellery.
Precious metals are more commodity-like and liquid in their characteristics than a painting or antique furniture, which seems to have been an important consideration in purchases.
The other treasure assets that Indians favour are classic automobiles and antique furniture.
Nevertheless, the primary driver for collecting treasure assets worldwide is enjoyment. Almost two-thirds of treasure owned by individuals globally is because of the pleasure it brings them. While the motivations for enjoyment differed across countries, in India, the main idea was to show off, as per the report.
Heritage was the second-most important motivation for owning treasure, valuing it as part of a family's culture.
The heritage motivation was particularly strong in India and the Middle East, which have a dynastic view of wealth. Indians want to pass on 67 per cent of their assets to their children or grandchildren, according to the report.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.