Art most preferred, followed by Jewellery and Classic Cars.

Mumbai, March 1, 2022 – According to the attitude survey conducted by Knight Frank’s The Wealth Report 2022,11% of the investable wealth of Indian ultra-high net worth individuals (UHNWI, whose net worth is US$ 30m or more)is allocated towards passion led investments against the global average of 16%. About 29% of Indian UHNWIsspent more on passion investmentsduring the year 2021. Joy of ownership scored above investment returns and marked as the driving factor to collect investments of passion by the Indian ultra-rich.

Art was the most preferred investment by Indian UHNWIs, followed by Jewellery and Classic Cars. Luxury Handbags and Wines, slipped from their earlier 1st positions to 5th and 7th respectively in 2021. According to Knight Frank’s luxury investment index (global), Art provided a return of 13% in a 12 – month period and 75% over 10years.

PASSION LED INVESTMENTS

RankIndiaWorld
1ArtArt
2JewelleryClassic Cars
3Classic CarsJewellery
4WatchesWine
5Luxury HandbagsWatches

Source: The Wealth Report Attitude Survey

Wine gains over rare whiskey globally on KFLII (Knight Frank luxury investment index) over 12months.

Collectable ItemsKFLII Q4 2020 (12-month change)KFLII  Q4 2020 (10-year change)
Wine16%137%
Rare Whisky9%428%

Source: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Color Research Foundation(coloureddiamonds), HAGI (cars), Rare Whisky 101 and Wine Owners.

Note: Knight FrankLuxury Investment Index (KFLII) is the weighted average of the change in value of each asset class over a given period

According to KFLII, in the 12-month period ending December 2021, Wine saw a 16% incremental value oninvestment, whereas Rare Whisky witnessed a 9% increase in value. However, over a 10-year period, Rare Whisky continues to top the charts, rising 428%.In line with global trends, Indian UHNWIs too cited a higher preference for Wine, compared to Rare Whisky in 2021.

Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The Indian UHNWIs have a fantastic appreciation towards investments of passion, where the consideration is beyond pure risk and return dynamics. With the world coming closer in this digital age, we expect this phenomenon to only grow stronger in the country.”

Andrew Shirley, editor of The Wealth Report at Knight Frank, who compiles KFLII, said: “The Covid-19 pandemic certainly hasn’t dented the enthusiasm of collectors who have continued to pay significant amounts of money for an increasingly eclectic mix of assets including basketball sneakers, comics and even meteorites.”

THE KNIGHT FRANK LUXURY INVESTMENT INDEX Q4 2021*

Objects of desire

12 month

10 year

Wine16%137%
Watches16%108%
Art13%75%
Coins9%64%
KFLII9%123%
Rare Whisky9%428%
Handbags7%78%
Cars3%164%
Jewellery2%57%
Coloured diamonds2%23%
Furniture1%19%

Sources: Compiled by Knight Frank Research using data from Art Market Research (art, coins, furniture, handbags, jewellery and watches), Fancy Colour Research Foundation (coloured diamonds), HAGI (cars), Rare Whisky 101 and Wine Owners.

Note: KFLII is the weighted average of the change in value of each asset class over a given period