Planning of entering into the world of alternative investments? Art can be a great alternative investment choice if it's procured in an intellect way: returns vary, but according to the index of fine art sales, art prices have improved at a multiple annual growth rate of 10% over the past four decades. Art has been emerging as a new asset class for the well-diversified portfolio.
An alternative investment is any investment other than the three traditional asset classes: stocks, bonds and cash. Alternative investments are part of a wide investment class which generally covers many tangible assets such as wine, art and stamps, precious metals etc. Diversification is a good thing where portfolios are concerned and returns on alternative investments are mixed.
Art can be a good investment because, historically, the price fluctuations in the art market don’t reflect the ups and downs of traditional stocks and bonds. When investing in art, there are risks involved but so are the potential rewards. And there are often a few instantaneous dividends as well.
A HongKong based alternative investment firm Terravida offers opportunities for interested investors to add art into their financial portfolios. Terravida truly offers some alternative ways to start investing in art and turn an existing art collection into a valuable asset.
A well known financial journalist and the editor of Morningstar UK, Emma Wall says, “Fancy yourself as a patron of the arts, but lacking in a philanthropic bank account? Consider graduate art. Not only can you boast of grass-root arts funding, you could end up with sky-high financial gains.”
Investors are embracing art-as-an-asset-class; they are eager to buy or invest in art. Independent alternative investment specialist- Terravida assists investors of all income levels to put their money into fine art for better, guaranteed returns.
Every investor should know that the nature of investing in art is considerably unlike than investing in real estate, stocks or bonds or mutual funds. Art investments do not provide the steady income one might earn from stock dividends, bond coupons or rent on property. Art - as an alternative investment option- is less liquid than traditional investments, meaning they can't be cashed in as quickly or easily. But of course there is a great advantage for art as an investment, as long as you buy what you be pleased about, you can always just have the benefit of it for its beauty, until you see big financial returns from the art piece.
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