Where India's Rich Invest In...

The Indian market remains an attractive place to do business for the nation's entrepreneurs, with 75 per cent of them operating domestically.

Rich Indian entrepreneurs are using their wealth predominantly for investment in stocks, bonds and real estate, according to HSBC's Global Entrepreneurial Wealth Report .

Eighty two per cent of such Indian entrepreneurs -- those with at least $2 million worth of investable assets -- the HSBC report said, prefer to invest in the above-mentioned asset classes, which is the highest percentage amongst business owners in ten international markets (at 51 per cent).

Investment in other businesses (at 41 per cent) and precious metals and stones (25 per cent) are the other investment avenues for the wealthy Indian entrepreneurs, the report suggests.

The results, HSBC said, are based on a sample of 1,798 high-net worth business owners who chose to take part in the survey with at least $2 million worth of investable assets.

A third of these (583) were ultra-high net worth and have a net worth of more than $100 million.

The research was conducted in France, Hong Kong, India, mainland China, Singapore, Switzerland, Taiwan, UAE, UK and the US.

"The surge in the Indian stock market, strong macroeconomic fundamentals and the rise in the number of India's ultra-high net worth individuals are enabling the wealthy Indian business owners to remain optimistic and turn into big spenders.

'Besides focusing on investment and spending, Indian entrepreneurs value connections, networks, mentorship and seek to make a positive contribution to society,' said Sandeep Batra, Head of Wealth and Personal Banking, HSBC India.

In terms of lifestyle spends, six out of ten (61 per cent) Indian wealthy business owners allocate personal wealth to real estate for their own use compared to one in two globally (51 per cent).

'They are more likely to spend money on luxury goods (56 per cent), compared to a global average of 40 per cent and luxury experiences (44 per cent), compared to a global average of 35 per cent,' the Global Entrepreneurial Wealth Report stated.

'They are less likely to spend money on art or collectibles (14 per cent) compared to 25 per cent globally,' the report added.

Meanwhile, the Indian market remains an attractive place to do business for the nation's entrepreneurs, with 75 per cent of them operating domestically.

One in three (32 per cent) are not considering doing business in other markets in the next 12 months.

Singapore, UAE, the UK and the US are the most popular markets to conduct business in the next 12 months.

Unemployment, corruption, inflation and taxation are the biggest worries of the wealthy Indian entrepreneurs.

However, three out of four (75 per cent) feel supported by the government and 86 per cent believe that society values business owners -- the highest percentage globally (jointly with UAE).

Feature Presentation: Ashish Narsale/Rediff.com