Two Macro Economic Factors That

Should Highlight To HNI Investor

During Your Sales Pitch

Presented by:
Kinjal Mehta
Mabeesa Khatarya
Komal Pal
Kalpesh Manval
 What Is Macro-economics?

Macro economics is a branch of the economics field

that studies how the aggregate economy behaves.

Macroeconomics (from the Greek prefix makro

-meaning "large" and economics) is a branch
of economics dealing with the performance, structure,
behavior, and decision-making of an economy as a
whole rather than individual markets.
 Different Factors In Macro-economics?

In macro economics, a variety of economy-wide

phenomena is thoroughly examined such as:

inflation,
price levels,
rate of growth,
national income,
gross domestic product and
changes in unemployment
 Who Is HNI Investor?

High-net-worth individual(HNI) is
a term used by some segments of
the financial services industry to
designate persons whose
investible assets (such as stocks
and bonds) exceed a given
amount.

These individuals are defined as

holding financial assets (excluding
theirprimary residence) with a
value greater thanUS $10 million.
 INFLATION
AND
INTREST RATE
 What Is Inflation?
In economics, inflation is a sustained increase in the
general price level of goods and services in
an economy over a period of time. When the price
level rises, each unit of currency buys fewer goods
and services.

Consequently, inflation reflects a reduction in

the purchasing power per unit of money a loss
of real value in the medium of exchange and unit of
account within the economy
 What Is Interest Rate?

An interest rate, or rate of interest, is the amount

of interest due per period, as a proportion of the amount lent,
deposited or borrowed (called the principal sum).

The total interest on an amount lent or borrowed depends on

the principal sum, the interest rate, the compounding
frequency, and the length of time over which it is lent,
deposited or borrowed.
 Inflation Affects HNI Investors

Negative correlation

The purchasing power of interest payments declines

as inflation rises

Rising inflation erodes the value of the principal on

fixed income securities
 Inflation affects HNI investors

Inhibits economic development

Unpredictable price levels

Cash will earn higher returns.

 Interest Rates Affects HNI Investors

Longer-dated bond holdings could be hurt.

Stocks can continue to gain, but investors may need

to be choosy.

Borrowing costs will rise.

 Interest Rates Affects HNI Investors
Higher rates could raise dollar-denominated
investments.

Economy may rely more on consumption, not

debt.

Potentially boost spending from interest earned.