India’s ultra-rich figure slumps, but study sees recovery

The number of the seriously rich in India shrunk by nearly a third in 2008. Only Hong Kong has lost more millionaires than India, according to a study. There were 84,000 high net worth individuals in India at the end of last year, according to the Merrill Lynch / Capgemini World Wealth Report released on Thursday.

This marks the first drop in the number of rich in India in at least seven years, Pradeep Dokania, head of global wealth management at DSP Merrill Lynch told reporters in Mumbai. In last year's report, India had witnessed the fastest growth in the number of high net worth individuals.

The world's rich lost a fifth of their wealth in 2008 and their number fell 15 per cent as the financial crisis wiped out two years of growth, the report showed. The value of the world's wealthy dropped below 2005 levels to $32.8 trillion.

This has lead to a loss of trust in wealth management firms and advisors. More than a fourth of those surveyed by the Merrill Lynch/Capgemini said they withdrew assets or left their wealth advisors in 2008.

However, things were showing signs of improvement and rich individuals in countries like India were now more inclined to add risk to their portfolios, Dokania added.

Merrill Lynch / Capgemini predicts financial wealth of the rich would surge nearly 48 per cent by 2013, led by Asia-Pacific whose wealthy individuals would control $13.4 trillion, the highest by any region.