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Direct equities led to overall wealth creation in FY17 according to research done by Karvy private wealth. Direct equities grew 26.8 per cent in FY17 and its share (second highest after fixed income) in financial assets jumped by 177 basis points to 18.43 per cent thanks to buoyant secondary equity markets and initial public offers.
As a result, financial assets grow 14.6 per cent, which led to overall wealth rising by 10.9 per cent in FY17. Share of financial assets in overall wealth rose 192 basis points to 59.27 per cent. On the other hand, growth in physical assets almost halved to 5.9 per cent in FY17.
Karvy predicts overall wealth in India to nearly double to Rs 639 lakh crore over the next five years. This will be led by 21 per cent average annual growth in direct equities, whose current size of about Rs 37 lakh crore will triple to Rs 100 lakh crore. Higher growth in equities will also have a rub-off effect on other financial assets like mutual funds, insurance and pension fund.
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