All that glitters

The richest Indian homes spend the most on a hopelessly unproductive asset

Quartz india
Quartz india

Despite the economic downturn and rising gold prices, the richest 0.5% or 117,000 Indian households spent 16% of their disposable income on buying jewellery. When it comes to buying gifts, however, they prefer luxury watches to jewellery, says the Kotak Wealth Management report for 2013-14. Released last week, the report is about the spending habits of ultra high net worth households—families that have accumulated at least Rs 25 crore over the last ten years.

The number of such households increased 16% over the previous financial year. The total net worth of Indian ultra high net worth individuals was one lakh crore rupees, and is expected to quadruple by 2018-19.

About 60% of high net worth individuals are engaged in philanthropy. The four metros—Mumbai, Delhi, Chennai and Kolkata—represent 55% of all ultra HNHs. The next top six cities—Bengaluru, Ahmedabad, Pune, Nagpur, Hyderabad and Ludhiana—now have 16% of such households.

The top 0.5% rich of India are experimental with cuisine. They like Chinese food the most, and eat out at fine dining Italian restaurants as often as ones that serve Indian cuisine.

They love to travel the world. Although the number of days per trip are reducing, the overall number of trips are increasing. There is an increased interest in short weekend trips amongst the rich. They spend an incredible Rs 1.2 lakh per couple per night on such trips.

This post originally appeared at Scroll.

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