High Net Worth Individual - HNWI

AAA

DEFINITION of 'High Net Worth Individual - HNWI'

A classification used by the financial services industry to denote an individual or a family with high net worth. Although there is no precise definition of how rich somebody must be to fit into this category, high net worth is generally quoted in terms of liquid assets over a certain figure. The exact amount differs by financial institution and region. The categorization is relevant because high net worth individuals generally qualify for separately managed investment accounts instead of regular mutual funds.

INVESTOPEDIA EXPLAINS 'High Net Worth Individual - HNWI'

The most commonly quoted figure for membership in the high net worth "club" is $1 million in liquid financial assets. An investor with less than $1 million but more than $100,000 is considered to be "affluent", or perhaps even "sub-HNWI". The upper end of HNWI is around $5 million, at which point the client is then referred to as "very HNWI". More than $50 million in wealth classifies a person as "ultra HNWI".

HNWIs are in high demand by private wealth managers. The more money a person has, the more work it takes to maintain and preserve those assets. These individuals generally demand (and can justify) personalized services in investment management, estate planning, tax planning, and so on.

RELATED TERMS
  1. Billionaire

    An individual who has assets or a net worth of at least one billion ...
  2. Tycoon

    A prominent figure in a particular industry who has built up ...
  3. Deficit Net Worth

    A scenario in which liabilities are higher than assets. Deficit ...
  4. Status Symbol

    A status symbol is an object which is meant to signify its owners' ...
  5. Tangible Net Worth

    A measure of the physical worth of a company, which does not ...
  6. Net Worth

    The amount by which assets exceed liabilities. Net worth is a ...
Related Articles
  1. How To Become A Sophisticated Investor
    Investing Basics

    How To Become A Sophisticated Investor

  2. Assets That Increase Your Net Worth
    Personal Finance

    Assets That Increase Your Net Worth

  3. The Importance Of Knowing Your Net Worth
    Investing

    The Importance Of Knowing Your Net Worth

  4. How To Calculate Your Tangible Net Worth
    Entrepreneurship

    How To Calculate Your Tangible Net Worth

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center