High net worth individual (HNWI or HNI) are generally rich or wealthy people with more money and assets, traditionally these people were called as millionaires or billionaires but these days the term high net-worth individuals is used by the financial services to denote an individual with high net worth. High net worth ,means your Credit worthiness ,as Banks or other financial institution rate you by looking at your Actual assets Liquid/Fixed.
Every organization which has financial dealing always has some important customers. The important customers are those who contribute significantly and their contribution matters a great deal in your organizational growth. These important customers are identified as High net-worth individuals(HNI). All the organizations try maintain good business relations with their HNI’s by informing about new products, promotions and activities of interest to obtain HNI’s contribution. Although there is no precise definition of how rich an individual must be to fit into this category, high net worth is generally quoted in terms of liquid assets over a certain figure. Some companies use the term HNI to denote individuals with over $100,000 financial assets excluding collectibles, consumables, consumer durables and primary residences and most financial institutions would also have a segment for Ultra-High Net Worth Individuals(UHNI), this is usually people with asset greater than $300,000. It’s like most industries that divide their client base into small market, middle market, etc. The categorization is relevant because high net worth individuals generally qualify for separately managed investment accounts instead of regular. These individuals generally demand personalized services in investment management, estate planning, tax planning etc..