Friday, October 13, 2006

10th World Wealth Report

10th World Wealth Report 2006

I recently read an interesting report by Merrill Lynch And Capgemini. This report gives us some insights about high net worth individuals (HNWIs). HNIWs is people with net financial assets of at least US$1 million, excluding their primary residence and consumables. There are a few important salient points about the report,

1) The HNWI population grew most dramatically in Asia than any part of the World. The growth of HNWI population in South Korea is 21.3 percent; India rising 19.3 percent; Russia, where it rose 17.4 percent, and South Africa, where it grew by 15.9 percent. (As compared to US’s figure of 8.8% and UK’s figure of 7.3%) In addition, three of the four BRIC nations (Brazil, Russia and India) are among the top 10 fastest growing HNWI populations.

2) We learned from this report that the commonest way for millionaires to become wealthy is through business ownership and the sale of a business (37%), incomes( 24%), inheritance (18%), investment(10%), stock options (9%) and other(2%).

3) HNWI s’ investments in North America and Europe will continue to decline and more funds will be reallocated to Asia Pacific and other emerging markets.

4) Most HNWIs tend to invest their money in equities (30%), fixed income (21%), cash and deposits (13%), real estate (16%) a, alternative investment ( 20%)

Hope you find this piece of information is useful and start invest and safe your money like a millionaire!

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