Millionaires' club gets bigger
Millionaires are no longer hoarding their cash
The number of dollar millionaires in the world grew by 500,000 to 7.7 million last year, helped by resurgent stock markets, a report claims.
Their combined wealth grew by 7.7% in 2003 to $28.8 trillion (£16 trillion), recouping losses incurred during the market downturn of 2001/02.
And their cash pile is set to soar to $40.8 trillion by 2008, authors Merrill Lynch and Capgemini predicted.
The bullish forecast reflects a growing appetite for high-return investments.
Big money
The report shows that the proportion of millionaires' cash invested in the stock market rose to 35% from 20% in 2002.
At the same time, cash investments fell to 10% from 25%, while investments in hedge funds - seen as a high-risk, high-reward option - rose to 13% from 10%.
The US produced more new millionaires than any other country last year, with the total number of 'high net worth individuals' rising by 14%.
But the ranks of the rich grew more rapidly in India, with an increase of 22%, and in China, with 12%.
Europe was a relative laggard, with the number of millionaires rising by just 2.6% to 2.6 million.
The report blamed "restrictive European income tax policies which impeded personal wealth accumulation."
The Merrill Lynch/Capgemini report defines a millionaire as a person with at least $1m (£550,000) in assets excluding the value of their homes.
http://news.bbc.co.uk/1/hi/business/3809465.stm
Millionaires are no longer hoarding their cash
The number of dollar millionaires in the world grew by 500,000 to 7.7 million last year, helped by resurgent stock markets, a report claims.
Their combined wealth grew by 7.7% in 2003 to $28.8 trillion (£16 trillion), recouping losses incurred during the market downturn of 2001/02.
And their cash pile is set to soar to $40.8 trillion by 2008, authors Merrill Lynch and Capgemini predicted.
The bullish forecast reflects a growing appetite for high-return investments.
Big money
The report shows that the proportion of millionaires' cash invested in the stock market rose to 35% from 20% in 2002.
At the same time, cash investments fell to 10% from 25%, while investments in hedge funds - seen as a high-risk, high-reward option - rose to 13% from 10%.
The US produced more new millionaires than any other country last year, with the total number of 'high net worth individuals' rising by 14%.
But the ranks of the rich grew more rapidly in India, with an increase of 22%, and in China, with 12%.
Europe was a relative laggard, with the number of millionaires rising by just 2.6% to 2.6 million.
The report blamed "restrictive European income tax policies which impeded personal wealth accumulation."
The Merrill Lynch/Capgemini report defines a millionaire as a person with at least $1m (£550,000) in assets excluding the value of their homes.
http://news.bbc.co.uk/1/hi/business/3809465.stm
