Do you know the art fund?

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Gallery Of Modern Art (GoMA) Glasgowart-fund-logo

Did you know that portfolio investment, hedge investment and trust investment are all art funds.

Of course, it is art portfolio investment. How does it work? That is, you can raise funds first and then make portfolio investments. For example, you can invest in porcelain from ancient times, or in modern works of art. Of course, you can also choose some works of art left after the war. In other words, art in different periods or various types of art can be the object of your portfolio investment. The final proportion of investment objects is determined by the art consultant and fund manager through discussion.

Of course, the funds of the Fund are not all used to buy porcelain and other artworks. Some of them are publicity fees. Only when the publicity work is in place, can the price of artworks be valued and then increased. The role of the art foundation is to securitise this portfolio.

Individuals with high net worth and companies managing the economy are major investors. If you want to enter the threshold of art investment, you need to prepare at least 500000 dollars. Investors can not get the ownership of the fund at the beginning, but have to wait for a period of time. 5% - 15% is the well-known compound annual rate of return.

All of the above are works of art. Are there any other forms? In the United States, there is an example of investing in artists. APT means to invest in artists. However, the investors are also artists, that is to say, both sides of the investment are artists. Different from direct investment funds, artists need to hand in at least one personal work to APT. After a few years, APT will wait for the price to sell again and get a good return.

The advantage of the art portfolio fund represented by APT lies in its strong liquidity, simple operation process and low cost. Because APT is somewhat similar to social insurance, once an artist chooses APT, the future value-added income from works of art will also be owned by the artist. Of course, the current income is also owned by the artist. In this way, the artist's own social risk is almost zero. Therefore, APT guarantees the safety of artists like insurance.

Apart from the other two fund forms, let's look at hedge funds. Because at present, hedge funds are still unknown to many people, and people have little understanding of them. Let's briefly understand its characteristics. As the first hedge fund, art trading fund can skillfully reduce risks through hedging to avoid major accidents when investing in art.

The art market is very large, and the art fund market is just a small branch of it. We have talked about direct investment in works of art, which can be found and collected, or directly bought with money. In addition to these two ways, there are also investments in art funds. In recent years, the number of art funds has also gradually increased. For example, according to data, in 2014, the number of art funds in the world reached the largest, totaling 68.2 billion dollars. China's funds have gradually become regular, while those in Europe and the United States have gradually become more specific and smaller.

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