You are using an older browser version. Please use a supported version for the best MSN experience.

Growing wealth

LiveMint logoLiveMint 10-06-2014 Livemint

The equity markets have been on a roll. Portfolios that had stagnated for long have begun to yield impressive returns. Much the same has happened across the world. A new survey of global wealth by Boston Consulting Group estimates private wealth across the world in 2013 rose due to higher equity returns. Private wealth across income categories is now worth $152 trillion, of which about 41% was held by millionaire households.

But the real action is in our part of the world. Asia-Pacific (without Japan) will account for half the growth in global wealth in the five years to 2018. Countries in this region benefit from higher savings rates as well as faster economic growth. Indian private wealth is forecast to grow to $5 trillion by 2018, or five times its level a decade ago.

Against this background, it is unfortunate that Indian households do not own enough equities. Their main preference is for bank deposits that often fail to offer returns higher than inflation. It is a challenge for policymakers.

More From LiveMint

image beaconimage beaconimage beacon