Thursday, January 05, 2006

RE: Art, now a big investment option

Rediff has an interesting article on art becoming a new Asset class. Here is a small snippet and a link to the article.
With stock markets being a gamble and savings fetching low returns, those with the extra moolah are adding art to their portfolio, in order to make more profits with less risk.

[Via rediff: Personal Finance]

This got me thinking about what are the choices that a retail investor has in terms of asset class in India. I am able to count the traditional choices today.

  1. The stock market : Today it is the hottest thing and also reached some dizzy heights.

  2. The bond market : Currently in a squalor due to escalating oil prices and falling US $.

  3. Real estate : Another poorly regulated asset class in India with lots of opportunity. Here information (or rather the lack of it) is hindering good growth.

  4. Jewellery: Long considered the key to savings by traditional Indian middle class, I think this sector stil shines bright in this country. The current escalating global gold prices is also helping the case.

There are other non-traditional investment classes that have caught the investor's fancy in recent times. They are

  1. art : The Rediff article says it all

  2. wine : This is another interesting asset class where there is a potential to capitalize on rare and specialized wines. In the US markets, there are actually Wine funds that can help this cause.

So there you folks, options and more options. Decide what works best for you.

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