Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate.

The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets, a report said on Wednesday. However, compared to financial assets which grew by 10.96%, physical assets growth was at a slower pace of 7.59% and individual investors are making more investments in financial assets, Karvy Private Wealth, the wealth management arm of financial-services conglomerate Karvy Group said. Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate. “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said in a statement.

Further, Prime Minister Narendra Modi’s goal of making India a $5 trillion economy will also have a surge effect on the private wealth by 2024. “We expect the HNI population to touch 1 million over the next five year,” Abhijit Bhave added. For the last fiscal year, individual wealth soared up by 9.62% to Rs 430 lakh crore.

In financial assets, Direct Equity, Fixed Deposits, Insurance, Saving Accounts and Cash are the top five picks for investment allocation as they contributed to a total of 72.33% of financial assets. These assets have been last year’s best investment picks as well. In physical assets, Gold and Real Estate together covered 92.57%. According to the Karvy report, the total wealth held by individuals in physical form, in this fiscal year, stood at Rs 167 lakh crore.

Forecasting that the individual wealth will grow at a CAGR of 13.19% by FY24, the Karvy report added that the private wealth will almost double to Rs 799 lakh crore from the current wealth of Rs 430 lakh crore. Going further, “massive investment in Infrastructure and Green Energy, backed with a regulatory boost with tax reforms, aided by a huge young workforce, will accelerate the Indian economy towards the $5 trillion target once there is a pickup in consumption,” the report said, adding that both urban India and the semi-urban and rural Bharat will go together to witness this.