Credit Suisse Global Wealth Report released on Monday showed that 7,59,000 Indians have wealth over USD $ 1 Million, up from 7,25,000 millionaires in 2018. India now hosts 2% of the global millionaires. Total household wealth in India increased to USD $ 12.6 Trillion in 2019, a jump of 5.2% from 2018. Wealth per adult increased by 3.3% during the last 1 year and now stands at USD $ 14,569.
As per the report, Indians hold an average of about US $13,000 in physical assets and roughly US $3,000 in financial assets. Debt per adult comes to USD $1,345. The report also projects total wealth in India to grow by 43% over the next 5 years.
In welcome news for the economy, India moved from 77th to 63rd position in World Bank’s Ease of Doing Business rankings. India’s ranking has consistently improved from 142nd in 2014 to 63rd in 2019. The government had earlier set a target of becoming one of the top 50 countries in the ease of doing business rankings by 2020.
A nation’s ranking on the Ease of Doing Business Index is based on the average of 10 criteria:
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credit
- Protecting investors
- Paying taxes
- Trading across borders
- Enforcing contracts
- Resolving insolvency
With the implementation of the Insolvency and Bankruptcy Code, the country jumped 56 places from 108th to 52nd in resolving insolvency. The time taken for resolving insolvency has reduced from 4.3 years to 1.6 years.
SPIVA (S&P Index Vs Active) published the Mid-Year report for 2019 this week. SPIVA studies the outperformance of active managers vs benchmark Indices all over the world. Their India report includes a 10-year comparison of Index Vs Active funds in the Indian Mutual Fund landscape.
The report shows that over the one year period ending 28 June 2019, 76.67% of Indian Equity Large-Cap Funds and 80.95% of Indian ELSS Funds underperformed compared to their respective benchmarks. On the other hand, 81.08% of Indian Mid-/Small-Cap Equity funds outperformed the benchmark over the one year period ending 28 June 2019.
Movers & Shakers
1/ ICICI Prudential Mutual Fund has appointed Bernard Teo as Director on the Board of ICICI Prudential Asset Management Company Limited, with effect from 23 October 2019.
2/ Franklin Templeton Mutual Fund has appointed Sanjaya Johri as an Independent Director on the Board of Franklin Templeton Trustee Services Private Limited, with effect from 17 October 2019.
Quote of the week:
The secret of success is to do the common thing uncommonly well.
: John D. Rockefeller Jr.