The prolonged economic slowdown has adversely impacted spending by ultra-high net worth individuals (UHNWIs) indicating a level of pessimism about the economy that was not seen last year, according to a new report by Kotak Wealth Management and Crisil Research.
The report reveals the emerging trends about spending, investing and income patterns of UHNWIs in prolonged economic uncertainty.
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The report highlights that the choice of location is the predominant factor that drives UHNWIs to purchase a luxury home. It is a status symbol for them and they go to great lengths to ensure exclusivity.
Brand aspects relating to the architect / developer, architectural significance, amenities on offer and so on are considered for exclusivity. Luxury home purchased by UHNIs are not confined to India. More and more UHNWIs are purchasing luxury properties abroad in places such as Singapore, London and Dubai due to comparable valuations overseas and investment considerations, reveals the report.
The Kotak-Crisil report also highlights that many UHNWIs understand that an efficient estate plan will ensure smooth succession of their estate to their heirs after them, protect the heirs against any possible disputes in future and ensure that requirements of dependent and minor beneficiaries are taken care of. But quite a few of them do not think that it is a very serious issue yet.
In the years ahead, the reliance on family chartered accountants / lawyers will decrease because the newer generation of UHNWIs are more aware of the nuances of estate planning and the niche products that are being offered by professional wealth managers, finds the report.
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By GlobalData"Gold/silver investments remain popular and a healthy proportion of the total UHNWIs’ portfolio continues to be invested in these two precious metals," the report further revealed.
