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ART INVESTMENT

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India is the fastest growing economy in the world and today we are 3 rd in global economy after USA and china. India is changing very fast with people adapting to new technology and ideas. There is always gap or space for any alternative asset class as far as wealth management is concerned. All the investment bankers as well as wealth managers are always looking out for any new and today’s most underleveraged “tool” of investment due to lack of awareness and knowledge . It’s time to welcome this new Asset class which is vibrant, visible and has a potential to grow more than traditional vehicles like Savings, FD, Bonds, PPF, etc. and at times can even match the high return vehicles like equity, mutual funds, real estate etc.

Today “art “market is very much matured in developed countries and even China is far ahead in “art business”. Cobalt Arts LLP is championing the process of “Art Investment” through its sheer reach in the Art industry in terms of sourcing the right artists which can be beneficial to Art Investors. Focus is also to spread awareness and knowledge about the same which will enable a Art Investor to take a well informed decision .

Cobalt Arts LLP under the combined skill sets of Neeta Pathare and Hemang Jhangla is developing a team to manage Art Portfolios of potential investors. Focus is completely on transparency, credibility and a highly aggressive mindset to expand the investor base . Data will play a crucial role for the art industry, and Cobalt Arts LLP team will analyse a large number of data points, such as artist, style, medium and size, rate progression etc . on the basis of which will recommend investments in art to its clients . Other factors such as an artist’ work, his career and the year of creation, and then integrating this data with analysis of art auction (if any ) results to estimating an artwork’s risk and return on investment will also be considered.

Cobalt Arts LLP offers art consultancy to individuals, institutions, corporates as well as public sector to help making well-informed choices while investing in artworks, planning long term investment strategy and also provide effective support from selection to installation of art. The investment rage we are getting in the market will be exclusive and still affordable.

INVEST IN ART – WHY?

Over a period of time Art has evolved as dependable asset class which can be bought and sold openly in the market and internationally especially in the western countries it has developed rapidly .They are much more evolved in buying /selling /collecting art, as there is a sizeable number of investors ( which is growing ). HNWI’s / Industrial Houses/Govt & Non Govt Institutes who have been in “Collecting” as well as “Investing” in Art . Transparency and adequate information has helped the buyers in taking well informed decisions which probably explains the rapid growth in these markets particularly in US & UK. The concentration and growth of wealth in the rising number of Indian High-Net-Worth Individuals (HNWIs) has certainly been encouraging for the visual arts industry in recent years, augmenting sales at the high-end of the market. While HNWIs have fundamentally driven the high-end art sales, the more affordable segment of artworks are also gaining massive traction amongst entrepreneurs, company executives and professionals, such as doctors and lawyers. Indian art collectors form a diverse cluster and encompass individual buyers and institutions having a wide array of goals, coming from different backgrounds and regions. The primary market features new and relatively unknown artists as well as more recognised contemporary artists, while the secondary market is where auction houses offer artworks for subsequent resale. Artwork prices in the primary market are usually lower compared to that of the secondary market, as artworks can take a lot of time before they attain prominence for their artistic value, rarity and historical importance. Hence, by the time works are resold, their prices tend to be higher.

1. DURATION OF HOLDING ART
Ideally the longer the period more return but 3 -5 years is medium term and 5-10 year is long term view

1. ESTIMATED GROWTH
Well informed investments in Art can easily beat the returns from conventional vehicles like Savings, FD and PPF. (PPF being the highest). Returns can be at par with a good performing MF and can even go higher. And more importantly like Real Estate chances of base price erosion are negligible.

3. TAXATION
Art work is an asset and treated as “ investment “ as far as income tax is concern and it will attract the capital gain tax only while sold in after adjustment of indexing , so there is only capital gain tax.

4. INSURANCE
You may also insure all your art works whether it is displayed or stored.

5. GUARANTEE WHILE PURCHASING ART
Like in any other asset class like say equity where you get all information about scrip and then take a well informed decision on the same. Like in any other investments things can go wrong in any investment vehicle. But we feel art investment if bought at the right price will be close to real estate investment where your base price is not eroded even in the worst case scenario.

6. WHAT TO DO WITH PURCHASED ART
One can display purchased artworks in their workplace or home or second homes. It can be also stored in a dry place. But in case of canvas paintings display of art is advisable as canvas needs to breath which increases life of the artwork. The best part of investing in art is “investment” can be “flaunted” unlike any other investments.

7. ASK FOR THE FOLLOWING DOCUMENTS WHILE PURCHASING ART.

  • Authentication certificate by artist or authorized trust.
  • A letter from earlier purchaser in case of purchase of resold artwork.
  • Invoice from Cobalt Arts LLP.
  • 8. PURCHASE TRANSACTION
    Purchase will happen between Client and Cobalt Arts LLP.

    9. WHERE TO SELL PURCHASED ART
    Cobalt Arts LLP can facilitate the sale of the artworks.

    10. WHAT ABOUT UPDATES
    Cobalt Arts LLP with the help of its dedicated analytical team will be sending the clients an annual update. In case of lot of changes/action in the industry updates can also be share on a 6 monthly basis. Client can also seek information from Cobalt Arts LLP for the current market price whenever he needs to know about it.

    11. SOME IMPORTANT TIPS

  • In case of canvas painting never pack the painting from both the sides. Pack it from the painting side and keep the back space open so that canvas can breathe and increase life of the painting.
  • Never wipe painting with any chemical or cleaning solutions. In case you find dirt on it just wipe it with little wet rag.
  • Never expose the artwork to direct sunlight.
  • Never do glass frame to oil or acrylic paintings. It has to be open.


    Contact Details :
    +91 9820550353/ +91 9821068552
    www.cobaltarts.in
    info@cobaltarts.in