HNWI is an acronym for High-Net-Worth Individual, a classification used in the financial services sector to refer to a person whose investable assets exceed a certain threshold. The generally accepted standard for being included in this category is possessing liquid financial assets with a value of at least 1 million US dollars (USD). This calculation typically excludes the value of a primary residence, collectibles, and consumer goods.
This segmentation is crucial for industries like private banking and wealth management, as HNWI clients require specialized and more sophisticated financial services. In addition to the basic HNWI category, further tiers are often used: VHNWI (Very-High-Net-Worth Individuals), with assets between $5 million and $30 million USD, and UHNWI (Ultra-High-Net-Worth Individuals), with investable assets exceeding $30 million USD. These groups have access to exclusive investment opportunities, tax advisory services, and family wealth management services.
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