New York:

India's expertise in the information technology and software industries helped grow the wealth of many non-resident Indians [NRIs] in the US, but also reduced their net worth as the Internet bubble burst. The Indian community in the US was probably affected by these events more than any other expatriate community in the world, note some studies.

"However, this is a cohesive and resilient community and many people have renewed vigour in their business operations and investments," says Subha Barry, first vice-president and head of Merrill Lynch's multicultural and diversified business development group.

Barry adds: "This is one reason why Merrill Lynch is currently expanding its South Asian wealth management focus, which has grown strongly in the US over the past few years, around the globe. Merrill Lynch's multicultural and diversified business development group aims to make Merrill Lynch the pre-eminent wealth management firm among the diverse South Asian market."

There are an estimated 20 million people of Indian origin currently residing outside India, with the largest populations in Myanmar, the US, Malaysia, Saudi Arabia and the United Kingdom, according to research by the London-based think-tank, the Scorpio Partnership.

"In the US, South Asians are the sixth-largest foreign population, with more than 1.8 million people of Indian origin," says Jyoti Chopra, director of South Asian business at Merrill Lynch's multicultural and diversified business development group. "This was the fastest growing foreign population in the country, with the number of people of Indian origin surging 105.9 per cent between 1990 and 2000, according to the 2000 census report."

NRIs continue to contribute strongly to the national economy, and are estimated to include 200,000 millionaires. The median income is over $60,000, compared to the national average of $38,885.

She notes that South Asians continue to find success in the US among:

• technology entrepreneurs,
  
• physicians and healthcare providers,
  
• small business owners, and
  
• corporate executives.

"In late 2001 after the technology bubble, Merrill Lynch estimated the size of the Indian entrepreneur market in Silicon Valley alone to comprise 200,000 people, with wealth worth $60 billion," she adds.

Studies by Merrill Lynch show that the NRI community is highly conservative when it comes to business and finance, with a strong propensity towards saving. "Education and saving for future education needs, for the next generation, continues to be a high priority," says Chopra. "Retirement saving and planning is also very important, particularly among segments such as NRI physicians and healthcare providers."

It is estimated that as much as 90 per cent of Indian business is family owned, making for complex inheritance planning. "Accordingly, alongside investment management advice, we provide the full range of estate planning services to accommodate the wealth distribution from one generation to another. Indian families tend to be large hence this service is almost an integral part of our investment advisory conversations," she says.

Chopra notes an increasing number of South Asian clients are also seeking more comprehensive and integrated financial services. "They increasingly want a single point of contact for all their financial needs, be it mortgages, business loans, credit cards, investment, insurance, banking or something else. This is one of the reasons we developed Total Merrill. With Total Merrill clients can choose to organise all, or components, of their financial life - from everyday cash management to long-term investments at Merrill Lynch."

She adds: "Another of the differences we bring to a NRI investor is a coordinated effort with our partners in India, DSPML, to provide access to the Indian market. This allows NRIs, who view India as an investment opportunity, to come to us for investment product and services from the Indian market, as well as the US markets - providing a one-stop shop offering global resources coupled with local expertise in both markets."

Recently, a change in Indian government policy has made it easier for NRIs to repatriate their wealth back to India from overseas. Bank deposits by NRIs rose 45 per cent or $2.5 billion to $27.7 billion in the nine months since 30 June 2002, she notes.

Merrill Lynch's Global Private Client group is one of the world's pre-eminent private wealth management and advisory services. With an international presence, its financial consultants combine world-class global resources with local expertise and experience to add value to their clients' wealth management. This individual-focused approach provides clients with personalised service, innovative products and customised solutions.

Merrill Lynch is one of the world's leading financial management and advisory companies, with offices in 36 countries and total client assets of approximately $1.1 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch investment managers, the company is one of the world's largest managers of financial assets.