June 24 (Bloomberg) -- The ranks of the world's millionaires rose 6 percent last year, as people in the emerging economies of India and China grew richer, according to an annual survey by Capgemini SA and Merrill Lynch & Co.

The number of people with more than $1 million to invest, not including the value of their homes or consumable goods, climbed 6 percent to 10.1 million last year, the firms said in their World Wealth Report, published today. The world's millionaires increased the value of their assets by 9.4 percent to $40.7 trillion, less than the 11.4 percent rise in 2006,

India and China posted the biggest gains in millionaires, advancing by 23 percent and 20 percent, respectively. During last year, the Standard & Poor's 500 Index of the largest U.S. stocks rose 3.7 percent, the U.K.'s FTSE 100 Index gained 2.4 percent and the Morgan Stanley Capital International Emerging Markets Index climbed 37 percent.

``The impressive growth of emerging economies was boosted by thriving exports and heightened domestic demand,'' Nick Tucker, market leader for Merrill's U.K. private-client division, said in London today. Slower economic growth may lead to a decline in the number of millionaires in the U.S. and U.K. this year, he added.

Wealthy individuals poured 44 percent of their investments into ``safer'' investments, like deposits and bonds, the survey showed. Turmoil in credit markets weighed on growth in assets under management for the global wealth-management industry last year, with the median increase slowing to 12 percent from 14 percent in 2006, a separate survey by Scorpio Partnership, a consulting firm in London, showed today.

New Millionaires

Growth in the number of millionaires slowed to 2.1 percent in the U.K., and about 4 percent in the U.S., according to the report. That was outpaced by an 8.7 percent rise in the Asia-Pacific region and 16 percent jump in the Middle East.

The International Monetary Fund predicts advanced economies this year will suffer their fastest price gains since 1995 and their weakest expansion in seven years. The World Bank said June 10 that global growth will slow a percentage point to 2.7 percent in 2008.

The number of ultra-high net worth individuals, or people with net assets of at least $30 million, rose 8.8 percent to 103,320, according to the survey. High net worth individuals will amass wealth of $59.1 trillion by 2012, or annual growth of 7.7 percent, the survey predicted.

UBS AG and Merrill Lynch, the largest and third-biggest money managers for the wealthy, had slower growth in assets under management last year, Scorpio Partnership said. Merrill's assets from affluent clients rose 8.3 percent to $1.31 trillion, and UBS managed the equivalent of $1.9 trillion, 8.8 percent more than in the previous year, Scorpio said.

`Constant Battle'

It's a ``constant battle,'' for large firms to differentiate themselves as wealth managers, Merrill's Tucker said. Scorpio estimates that banks are competing for more than $9 trillion in still untapped assets from the world's millionaires.

Wealthy individuals didn't forgo expensive purchases last year. The Forbes cost of living extremely well index, which tracks the annual cost of a basket of goods including art and jewelry, rose 6.2 percent in 2007, compared with a year earlier, according to Merrill Lynch and Capgemini.

Sales of some luxury goods have remained resilient in the face of tightening in global credit markets. Porsche SE, the maker of the 911 sports car, this month said that sales in the 10-months to May 31 rose 0.7 percent, with profit growth matching revenue gains, as drivers bought more Cayenne models.

Ferretti SpA, the Italian maker of Riva yachts, plans to file for an initial public offering in the next few days after receiving approval from shareholders, Chief Executive Officer Vincenzo Cannatelli said June 20. Ferretti, 60 percent-owned by private- equity firm Candover Investments Plc, wants to expand its current operations and buy new companies, Cannatelli said.

To contact the reporters on this story: Joyce Moullakis in London at jmoullakis@bloomberg.net

Last Updated: June 24, 2008 09:49 EDT