HNWI
What are they?
The acronym HNWI stands for high-net-worth individual. This term refers to a person or family with a high level of wealth, generally defined by a specific threshold of financial assets or net worth. Although the threshold can vary depending on the context or institution, an HNWI is generally considered to have a net worth greater than one million euros, excluding the primary residence.
HNWI individuals or families often have access to a variety of investment opportunities that are not available to the average investor, due to their financial capacity and their willingness to take on higher risks in exchange for potentially higher returns.
Key aspects to consider
HNWIs are a key segment for high-end financial services. Some characteristics that define this group include:
- Asset diversification: HNWIs tend to have diversified investment portfolios that include both traditional assets (such as stocks and bonds) and alternative assets (such as real estate, private equity, or art).
- Access to exclusive services: They have access to personalized financial advisory services, wealth planning, and risk management, offered by private banks and specialized consultants.
- Tax and estate strategies: Due to their wealth, HNWIs often focus on optimizing their tax burden and planning the transfer of their wealth to future generations.
This group of individuals is crucial for the investment market, as their decisions can influence capital flows and market trends. Furthermore, HNWIs are increasingly looking for investment vehicles that allow them to maximize returns while protecting their wealth in the long term.