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Indian ultra-HNIs put 11 pc of investable wealth into art, jewellery, classic cars, others

05:40 PM Mar 01, 2022 | PTI |

 New Delhi: Indian ultra-high net worth individuals (UHNWI), those having net worth of USD 30 million (about Rs 226 crore) and above, allocated 11 per cent of their investable wealth towards luxury items like art, jewellery, classic cars, watches and handbags, according to Knight Frank.

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”11 per cent of the investable wealth of Indian ultra-high net worth individuals (UHNWI) is allocated towards passion led investments against the global average of 16 per cent,” Knight Frank India said in a statement.

As per its Wealth Report 2022 released on Tuesday, about 29 per cent of Indian UHNWIs spent more on passion investments during 2021 compared to the previous year.

Joy of ownership, rather than investment returns, was the driving factor for India’s ultra-rich for their passion investments, the consultant noted.

”Art was the most preferred investment by Indian UHNWIs, followed by Jewellery and classic cars,” it said.

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Luxury handbags and wines slipped from their earlier 1st position to 5th and 7th respectively in 2021.

According to Knight Frank’s global luxury investment index, art provided a return of 13 per cent in 2021 and 75 per cent over 10 years.

Wine gained over rare whiskey globally in the 12-month period ended December 2021. Wine saw a 16 per cent incremental value on investment, compared to 9 per cent for rare whisky.

However, over a 10-year period, rare whisky continues to top the charts, rising 428 per cent.

In line with global trends, Indian UHNWIs too preferred wine over rare whisky in 2021.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, ”The Indian UHNWIs have a fantastic appreciation towards investments of passion, where the consideration is beyond pure risk and return dynamics. With the world coming closer in this digital age, we expect this phenomenon to only grow stronger in the country.” Andrew Shirley, editor of The Wealth Report at Knight Frank, said the COVID-19 pandemic certainly has not dented the enthusiasm of collectors who have continued to pay significant amounts of money for an increasingly eclectic mix of assets including basketball sneakers, comics and even meteorites.

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