Art most preferred, followed by Jewellery and Classic Cars
MUMBAI: According to the attitude survey conducted by Knight Frank’s The Wealth Report 2022, 11% of the investable wealth of Indian ultra-high net worth individuals (UHNWI, whose net worth is US$ 30m or more) is allocated towards passion led investments against the global average of 16%. About 29% of Indian UHNWIs spent more on passion investments during the year 2021. The joy of ownership scored above investment returns and was marked as the driving factor to collect investments of passion by the Indian ultra-rich.
Art was the most preferred investment by Indian UHNWIs, followed by Jewellery and Classic Cars. Luxury Handbags and Wines slipped from their earlier 1st positions to 5th and 7th respectively in 2021. According to Knight Frank’s luxury investment index (global), Art provided a return of 13% in a 12 – month period and 75% over 10 years.
PASSION LED INVESTMENTS
Wine gains over rare whiskey globally on KFLII (Knight Frank luxury investment index) over 12 months.
Note: Knight Frank Luxury Investment Index (KFLII) is the weighted average of the change in the value of each asset class over a given period
According to KFLII, in the 12-month period ending December 2021, Wine saw a 16% incremental value on investment, whereas Rare Whisky witnessed a 9% increase in value. However, over a 10-year period, Rare Whisky continues to top the charts, rising 428%. In line with global trends, Indian UHNWIs too cited a higher preference for Wine, compared to Rare Whisky in 2021.
Shishir Baijal, Chairman & Managing Director, Knight Frank India said,
“The Indian UHNWIs have a fantastic appreciation towards investments of passion, where the consideration is beyond pure risk and return dynamics. With the world coming closer in this digital age, we expect this phenomenon to only grow stronger in the country.”
Andrew Shirley, the editor of The Wealth Report at Knight Frank, who compiles KFLII, said:
“The Covid-19 pandemic certainly hasn’t dented the enthusiasm of collectors who have continued to pay significant amounts of money for an increasingly eclectic mix of assets including basketball sneakers, comics, and even meteorites.”
THE KNIGHT FRANK LUXURY INVESTMENT INDEX Q4 2021*
Note: KFLII is the weighted average of the change in the value of each asset class over a given period
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