Art Funds

A simple way for people who are interested in investing in art is by way of Art funds. Art funds work in a similar manner like mutual funds and aim to deliver returns by investing in a well-diversified portfolio of select art works. Such art works may be created by a range of Indian artists, both - masters as well as amateurs.

The Indian contemporary art has a very inspiring infrastructure of art schools, art galleries and dealers who are networking across the world to ensure its success.

Art Fund - Advantages

• Lower investment is needed as compared to other investment options

   

• Economies of scale accrue with respect to costs such as gallery commission, etc

   

• Professional advice and expertise is available

   

• Infrastructure to conduct research is already available

Art funds generally consist of resources that are pooled together by individuals until an adequately large corpus is created. This money is then used to buy pieces or works of art either from the artists directly or from the possessors through exhibitions. When the art pieces are sold, the profits obtained from the same are then distributed to the investors. In India, Osian’s Art Fund, Crayon Capital Art Fund, Yatra Art Fund, and Copal Art Fund are a few art funds available in the market.

According to some financial planners, an art fund as an investment choice not only offers an unlimited scope for receiving high returns but also shares a contrarian trend with equity markets that safeguards one’s portfolio against existing market risks. Hence, art funds offer that extra cushion against the losses from other investments.

However, it should be noted that art funds are not governed by any laws or regulations. Thus, evaluations, valuations and NAV remain unclear. It becomes all the more important to go through a reliable and investor-friendly fund with integrity, expertise, and an impressive past track record.