High Net Worth Individual - HNWI

A classification used by the financial services industry to denote an inpidual or a family with high net worth. Although there is no pcise 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 inpiduals generally qualify for separately managed investment accounts instead of regular mutual funds.

|||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 pserve those assets. These inpiduals generally demand (and can justify) personalized services in investment management, estate planning, tax planning, and so on.