India is adding high net worth individuals at the fastest rate among major countries,

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a Merrill Lynch-Capgemini wealth report said on Wednesday.

The domestic HNI head count grew at 20.8 per cent in 2010 to 153,000 compared with 126,700 in 2009 while the growth was only 12.3 per cent in Canada and 12 per cent in China.

HNIs included in the report are those having investible assets of $1 million or more, excluding primary residence, collec­tibles, consumables and consumer durables.

The US, with the larg-est HNI population (28.6 per cent), registered a growth of 8.3 per cent, same as the global growth.

This is the second consecutive year when India’s high net worth individuals population growth has been among the top, as the country continues to benefit from a robust economy and strength in other key wealth drivers such as equity markets, the report said.

“In India new high net worth individuals being added are professionals like lawyers and doctors,” Pradeep Dokania, chairman, Merrill Lynch Global Wealth Management, India, said.

Last year, India had the 12th biggest high net worth individual population, replacing Spain, which dropped to 14th, the report said.

Other countries with major HNI population are the US, Japan, Germany, China, UK, France, Canada, Switzerland, Australia, Italy and Brazil.

Last year, high net worth individuals allocated more money to equity and slowly reduced holdings of cash/deposits and fixed income instruments. They are expected to increase equity and commodity allocations even more next year while reducing allocation to real estate and cash/deposits, the report said.

“With a gross domestic product (GDP) growth rate of 9.1 per cent in 2010 and an increase in market capitalisation by 24.9 per cent, India presents a great opportunity and continues to remain an important market for wealth management providers worldwide,” Atul Singh, managing director and head, Merrill Lynch Global Wealth Management, India, said.

Globally, the demographic profile of high net worth individuals is shifting towards the younger generation (age up to 45), whose share rose to 17 per cent in 2010 up from 13 per cent two years ago. Similarly, women made up 27 per cent of HNIs in 2010, up from 24 per cent in 2008.