Lifestyle of the super-rich: 6 top trends

Kotak Wealth Management launched ‘Top of the Pyramid 2014’ report in Mumbai today. The report, covering the period 2013, encapsulates the ‘Ready for Change’ mood of India’s UHNHs, in the context of emerging changes across the economic, environment and political landscape of the country. The changing winds saw UHNIs become optimistic and confident which is reflected in their Spends - Luxury Travel, Philanthropy and Investments, with avenues like Private Equity being explored widely. ‘Top of the Pyramid 2014’ is based on in-depth interviews with luxury service providers such as luxury travel companies, luxury watch companies, jewellery companies, Wealth Management relationship managers, and an extensive market research with 150 UHNIs across multiple cities.
Number of Ultra High Net Worth Households (UHNHs) increased by 16 per cent to 117,000 in FY 2013-2014 from 100,900 in FY 2012-2013. (Image source: Thinkstock)

Metros dominate the geographic chart for UHNH distribution at 55 per cent and the next top six cities (Bengaluru, Pune, Ahmedabad, Nagpur, Hyderabad and Ludhiana) account for 16 per cent share. (Image source: Thinkstock)

Optimistic economic environment and hope for a stable political environment triggers increase in expenses from 30 per cent in 2012 to 44 per cent in 2013; C. Jayaram, Joint Managing Director, Kotak Mahindra Bank Limited, said, “This year’s report captures the mood and behaviour of the super-rich against the backdrop of all-round emerging optimism in the economy. India’s super rich are moving out of their comfort zones to put more monies in the rare and the risky – exotic food, private equity and even space travel.” (Image source: Thinkstock)

Equity and Real Estate investments overtake debt;  “HNIs are now warming up to equities as compared to the lull or sideways movement that we saw for last five years. The perceived risk has subsided and it is more to do with the hope that the country sees in structural reforms the new government will deliver. Today, UHNIs are in strong contact with people globally and we realize India is gaining more traction among emerging markets,” adds Jayaram. (Image source: Thinkstock)

26 per cent of Ultra High Net Worth Individuals (UHNIs) surveyed include Private Equity (PE) investments in their portfolios; Real Estate and IT emerge as top two sectors, and e-commerce is a new favourite on the PE investment block for UHNIs. (Image source: Thinkstock)

Over 60 per cent of the UHNIs surveyed consider philanthropy while planning annual expenditure;  education (86 per cent) followed by ‘food for poor’ (79 per cent) get preference; Murali Balaraman, Partner – Advisory Services, Ernst & Young, added, “Top of the Pyramid 2014  has been prepared with survey results and analysis of more than 150 UHNIs across ten Indian cities and interviews with luxury service providers. The optimism of changing environment is reflected in the aspirations of UHNIs as their spend get more luxurious and investment more exotic. We expect a continued momentum in the positive trend and even further acceleration, with UHNIs being an ever alluring segment.” (Image source: Thinkstock) (Read Full Report)