The number of high net worth individuals in India fell from 1.23 lakh in 2007 to 84,000 in 2008. These people are now exploring new ways of saving money. A report on world wealth released by DSP Merrill Lynch and Capgemeni says that the reduction in the number of HNIs in India is the second highest drop in any country in the world.u00a0 HNIs, according to the report, are those who have an investible surplus of over $1 million, excluding their primary residence and consumables. Pradeep Dokania, head of Global Wealth Management at DSP Merrill Lynch said that the drop put India as the second-worst performer, just behind Hong Kong. The report states that the total number of HNIs in the world fell close to 15 per cent in 2008. India had witnessed the fastest growth of HNI numbers touching 1.23 lakh in 2007. "The global economic and market downturn has shaken the trust and confidence that HNIs placed in market regulators, financial institutions and the very principles of portfolio management. It has also made most of them shift their money into safer assets such as fixed income, cash-related instruments and domestic investments," said Mr Parekh. Cash-based holding between global HNIs increased to 21 per cent of their portfolios, says the report. "As the markets recover, they (HNIs) will have the flexibility to readjust their strategies and reinvest in new and developing opportunities along the way," the report reads. According to wealth managers offshore investments had taken a huge beating. "Investors are now finding the domestic market more attractive than investing elsewhere," they said. Factfile The wealth of the world's rich people dropped by 19.5 per cent to $32.8 trillion in 2008, shrinking the global HNI population by 14.9 per cent to 8.6 million. The report also stated that those with net asset of $30 million or above, again, excluding primary residence and consumables, are ultra-HNIs. And this population suffered the most, globally. The number of ultra-HNIs fell by 24.6 per cent during the last one year.

Midday meal may soon be out of reach

The number of high net worth individuals in India fell from 1.23 lakh in 2007 to 84,000 in 2008.

High net worth folks play it safe

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