How the wealthy are investing for growth

[Music] High net worth individuals globally are reaching unprecedented numbers and wealth levels wealth expanding by 4.7% in 2023 as the population of high net worth individuals Rises 5.1% to shed light on what moves the ultra wealthy are making with their money we have Elias ganam who is the global head of Cap Gemini Research Institute for financial services I mean this is particularly interesting because one of the interesting kind of markers that I've heard at least and many out there who are paying attention is the number of millionaires that are being minted on a daily basis here whether in major cities like New York or elsewhere so how is that playing into the investment strategy and the returns for some of the ultra high net worth individuals out there in fact all started last year when we looked at the numbers last year everybody went in wealth preservations right things were very confusing last year so we saw all the numbers in total wealth and in total in population of wealth going down and we saw the asset classes where you put your money depending on how you are last year you throw all your money in cash so you know what let's wait and see what's happening what are we observing this year is Cash Cash equivalent is down back to 25% fixed deposits is building up real estate is building up and alternative investment is building up people are slowly but surely moving from wealth preservation let's be safe to we's grow and so that sounds like taking on a little bit more appetite for risk potentially where are some of the riskier elements of the portfolio that you're seeing being tapped into right now it's starting let's be realistic right it's early days people are start looking such a geopolitical environment so complex half of the global population going on Election this year um all that and then all the wars that are happening left and right unfortunately all that makes people quite a little bit careful but on the other side Tech stock market is doing very well so there are bets people are making bets and we've been observing that in our uh Wells report that people are starting to say we starting to do some bets and investing in some opportunities there were some of these individuals or households that were able to invest at times when other people needed to pull money out of the market and and I think back to the co pandemic when we saw a massive dip of course the bottoming out in late March of 2020 uh and ultimately a heavy buying back in Action when it felt like okay at this level we need to put some of this cash back to work that's an opportunity that not a lot of other people had but where did some of the wealthier individuals and households buy into at that time that helped solidify wealth and returns even further three categories uh real estate alternative investments in terms of private equity and some uh investment into Bitcoins and cryptocurrencies at different scales real estate we had high interest rate so logically people start buying houses so the market went at down if you have the cash that's the right time to do it uh logically private Equity ultra high networks indidual have a longterm View and are able to make bets on a much longer term and by the way we are in such a transformation of the economy from uh to renewable economy that there are bets to be made and cryptocurrency depending on how the the Bitcoin goes up and down people are interested we're observing that quite a lot recently Cap Gemini research institutes Elias ganam thanks so much for taking the time here with us today thank you so much for having me here absolutely

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Id: qz8wM01ZI4Q

Length: 3min 43sec (223 seconds)

Published: Sun Jun 23 2024