Karvy Private Wealth CEO Sunil Mishra (left) with marketing head Varun Saxena in Mumbai on Monday. (Fotocorp)

Mumbai, Dec. 23: Total individual wealth in India will more than double to Rs 411.51 lakh crore from Rs 202 lakh crore in five years, with both financial and physical assets leading the charge, a report by Karvy Private Wealth said.

By 2018, wealth in financial assets is expected to touch Rs 228.36 lakh crore from Rs 109.86 lakh crore in 2012-13. The report projected that direct equity was expected to be the largest asset class with fixed deposits and bonds coming in second. At present, equities as an asset class account for only 13 per cent of the wealth of individuals.

The wealth held by individuals in financial assets will increase over five years on account of returns on existing investments and additional wealth being invested from household savings every year.

According to the report, the composition in the physical assets category is likely to see some revision with wealth in real estate (excluding primary residence) likely to double. Gold, which constitutes 66 per cent of physical wealth and 30 per cent of overall individual wealth in 2012-13, is expected to comprise 52 per cent of physical wealth and 22 per cent of overall wealth by 2017-18.

In 2012-13, around Rs 92 lakh crore of individual wealth was held in physical assets, with another Rs 110 lakh crore in financial assets. Of the total wealth of Rs 92.06 lakh crore in physical assets, individual wealth in gold stood at Rs 60.61 lakh crore in 2012-13.

Investment in real estate was at Rs 31.43 lakh crore, excluding primary residence. Investment in real estate outside India was placed at Rs 1,740 crore against Rs 1,600 crore in the previous year.

Households piled up as much as 20,470 tonnes of gold till March 2013, a growth of 10.1 per cent over the previous year. Wealth in gold constituted 65.84 per cent of individual wealth held in physical assets and India accounted for 28 per cent of the total global demand.

Globally, investment in physical gold fell 3.83 per cent over last year, while the demand in India rose 3.57 per cent.