Investment Trends Among Ultra High Net Worth Individuals

High net worth individuals are diversifying investments into real estate, private equity, and cryptocurrencies for long-term returns and growth potential.

### High Net Worth Individuals' Investment Trends and Strategies for 2023
* 💰 The global population of high net worth individuals is growing by **5.1%**, with their wealth expanding by **4.7%** in 2023.
* 🔍 Elias Ganam, the global head of Cap Gemini Research Institute for financial services, discusses the **investment moves of ultra high net worth individuals**.
* 💸 Last year, amidst the confusion, everyone focused on wealth preservation, with cash being the **primary asset class**. This year, cash is back to **25%**, and investments in **fixed deposits, real estate, and alternative investments** are increasing.
* 📈 People are gradually shifting from **wealth preservation** to **growth**, indicating a **slightly higher risk appetite**.
* 🌍 Despite the complex geopolitical environment, the tech stock market is performing well, leading people to make **investment bets**.
* 🏠 During the COVID-19 pandemic, some wealthy individuals and households took advantage of market dips to **invest in real estate, private equity, and cryptocurrencies**.
* 🏠 Real estate was attractive due to **high interest rates causing the market to drop**.  
Private equity investments reflect the **long-term view of ultra high net worth individuals**.
* 🪙 Cryptocurrency investments, particularly in Bitcoin, are also gaining interest as the **market fluctuates**.

[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? 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 I think back to the co-pandemic when we saw a massive dip, of course, the bottoming out in late March of 2020, 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: real estate, alternative investments in terms of private equity, and some investment into Bitcoins and cryptocurrencies at different scales. Real estate: we had high interest rates, so logically people start buying houses, so the market went down. If you have the cash, that's the right time to do it, logically. Private Equity: ultra high

networks individual have a long-term 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 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.

How the wealthy are investing for growth

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The Investment Trends of Ultra High Net Worth Individuals

The global population of high net worth individuals is growing by 5.

There is a shift from wealth preservation to growth, with a decrease in cash investments and an increase in fixed deposits, real estate, and alternative investments.

Despite a complex geopolitical environment, there is a growing appetite for risk, with a focus on the tech stock market and other emerging bets.

Wealthy Investment Trends During the Pandemic

Some wealthy individuals and households took advantage of the market dip during the pandemic to make profitable investments.

They focused on real estate, private equity, and cryptocurrencies, capitalizing on low housing prices, alternative opportunities, and the growing popularity of digital currencies.

The Impact of Cryptocurrency on Long-Term Investments

Cryptocurrency is becoming a significant focus for long-term investors due to the ongoing transformation to a renewable economy.

The fluctuation of Bitcoin is attracting a lot of attention and interest from people looking to make bets on the future.

Cap Gemini research institutes are observing a growing trend of cryptocurrency's influence on long-term investments.