In India, the percentage of High Net Worth Individuals (HNI or HNWI) have gone up in recent times, owing to a surge in business opportunities, foreign investments, and new-age digital entrepreneurs. This lead to a tectonic shift in the wealth management industry.
A one-dimensional approach to private wealth management can shunt the diversification of asset allocation, and the new-age Ultra HNWIs are willing to explore avenues with tech-enabled, holistic solutions that span an entire spectrum of financial services.
The Indian market for ultra HNWI investments is still very nascent and yet to be explored to its full potential. There is a wide range of investments for HNWIs that includes estate planning and tax planning, alternative investments, fixed deposits, treasury bonds, government and corporate bonds, etc. even structured philanthropy indicating a commonality when it comes to their investing modus operandi.
| HNI or HNWI | Emerging HNWI | Ultra HNWI |
|---|---|---|
| Individuals with more than Rs 2 crores investable capital | Individuals with an investable surplus of Rs 25 lakhs to Rs 2 crores | Individuals who have assets worth 200 crores and above. |
A person or family with significant financial wealth is called as a high-net-worth individual (HNWI). HNWIs typically have investable assets over a particular threshold, including cash, securities, real estate, and company interests. The precise barrier may vary depending on the nation and financial institution, although it is typically set at a high level. To protect and increase their wealth, HNWIs frequently look for specialised financial services and investment options catered to their affluent status.
The number of ultra-HNWIs in India has been growing at 12% CAGR.
Based on their sources of wealth and investing choices, High-Net-Worth Individuals (HNWIs) can be divided into various groups. Here are a few typical examples:
It's vital to remember that these criteria could change depending on places, currencies, and financial organizations. Additionally, when calculating net worth in the context of HNWIs and UHNWIs, it is customary to exclude personal assets, property, collectibles, and consumer durables.
HNWIs are categorized based on the value of their liquid financial assets. Here are the common categories:
High-Net-Worth Individuals (HNWIs) enjoy several benefits due to their affluent status. Here are some common advantages they receive:
It's important to note that the specific benefits and services available to HNWIs may vary depending on their financial institution, wealth manager, or advisory firm. Each client's situation and needs are taken into consideration when providing personalized services to HNWIs.
KredX is India’s leading invoice discounting platform, providing businesses and their suppliers with cashflow solutions while offering investors a unique opportunity to make low-risk and high-returns investment within a short time span. The alternative short-term investment product enables investors to invest in a brand-new asset class and get above-market returns at minimal risk.
At the end of 2017, holding shares in businesses was the most favoured investment channel for Indian HNWIs, making up for almost a quarter of their assets. Cash, bonds, real estate, and equities accounted for over 21%. Most investments, including equity funds, are associated with a high level of risk, and therefore diversification of portfolio is required to maximise the returns. Invoice Discounting is a great opportunity to build a portfolio in a novel way for HNWIs seeking diversification in their investment plan. With KredX the HNWI portfolio strengthens to form a remunerative investment avenue at minimal risk to compensate for the deficiencies of the changing markets.
KredX offers a reliable and definitive short-term investment option for HNWIs with minimal risk. Invoice discounting is a safe investment and a brand-new asset class with a healthy portfolio diversification at above-market returns and minimal risk in a short time frame. The entire process is fool-proof, wherein:
Unique fixed-income decisive short-term investment
Secured Risk Mitigation
To start investing in KredX, one has to be:
High-Net-Worth Individual (HNWI) in India is defined as someone with liquid assets of at least $1 million. These individuals often seek the assistance of financial professionals to manage and preserve their wealth. Being an HNWI grants them access to additional benefits and investment opportunities that are typically unavailable to the general public.
Private wealth managers actively pursue HNWIs due to the complexities involved in maintaining and growing their assets. While the United States currently has the highest number of HNWIs globally, India also boasts a significant number of wealthy individuals.
It's worth noting that liquid assets do not include primary residences or works of art, as these cannot be easily and quickly converted into cash. HNWIs in India rely on financial experts and specialized services to navigate the complexities of wealth management and maximize their investment potential.
Individual resident investors, HUF / Proprietorship registered in India Institutional investors, NRI investors (Provided you have an NRO account and comply with basic predefined KYC guidelines- Pan card and valid Indian address proof)
You can invest a minimum of INR 3 lakhs per deal.
Invoice Financing is a very niche product and KredX's Invoice Discounting platform ensures higher short-term yield for its investors. Our conservative and ever-evolving risk management policies minimise the risk of investing for our investors.
No. Being an ISO 27001:2013 certified private entity which deals with secure information from the clients, KredX takes strict measures in dealing with secured information.
KredX provides the option of short-term investments to our investors due to which the maximum tenure for a discounted invoice is 90 days.