High Networth Individuals are widely defined as individuals who hold an investible surplus amount or assets of more than ₹ 5 crores. 

In financial sector parlance, the term High Networth Individual (HNIs) is referred to an individual who has liquid financial assets of at least $1 Million. 

The assets owned by these HNIs must be easily liquidated like bonds, stocks, money held in banks, and brokerage accounts, but do not include assets like residential property, durable goods, Appliances/Equipment, Fine art, or Collectibles. 

Because of their wealth, HNIs generally seek professional assistance from Investment Managers professionals or Portfolio Managers, to manage their money, investments, and portfolios. Due to their high investment, the High Networth Individuals are often provided additional benefits and opportunities.

High Networth Individuals (HNIs) seek out Wealth Managers, for expert services in safeguarding, investing, and managing their financial assets. With the increase in the value of the liquid assets held by HNIs, they become more appealing to a Wealth Manager, as the fees charged for the services rendered by them is a percentage of the total value of the assets managed. 

Types of HNIs:

Based on the liquid assets value or extent of investible surplus money held, High Networth Individuals can be broadly categorized as:

1.    High Networth Individuals (HNIs): Individuals who own liquid assets valued between ₹ 5 crore

2.    Very High Networth Individuals (VHNIs): Individuals who hold liquid assets valued between ₹ 5 crore to ₹ 25 crore

3.    Ultra High Networth individuals (UHNIs): Individuals who have more than ₹ 25 crores in liquid assets

India had 0.35 million HNIs in the year 2020 with the number projected to increase to 0.61 million by 2025. The United States had the most number of HNIs in the world with more than 6.5 million people in the year 2020.