 Artist: Siraj Saxena |
Why invest in art?
- Art gives pleasure and if chosen properly can bring excellent financial rewards.
- Indian art is attracting an increasing number of new investors.
- Art is an alternate asset class.
- Returns from art have beaten all other assets.
- Indian art is heavily undervalued compared to international art but comparable in quality.
- The art market has a low correlation with the direction of stocks, bonds and other traditional asset classes. This means it can provide a low risk strategy and a powerful diversification effect to a traditional investment portfolio.
Is it important to diversify my portfolio?
Yes, if you are following an investment strategy then it is important to diversify your art portfolio to avoid the ‘all eggs in one basket’ syndrome. Portfolio can be diversified by spreading your risk through artist, category of artist, medium, etc.
How do I begin investing in Art?
As a beginner, we suggest that you invest in art through a good art fund.
How can I invest in art through Copal Art?
Copal Art Portfolios (CAP) Series III for Rs 150 crores to be launched in the first quarter of 2008, is a scheme for persons interested in investing in art. Please read ‘Steps and Procedure’ for investment under CAP, in our website.
How can I be sure I am buying high quality Indian art through Copal?
Copal Art sources its artwork directly from artists and reliable secondary sources with the screening and approval of the art experts of Copal’s Art Selection Panel.
How can I monitor art price movements?
Copal Art will keep you informed of price movements and market news that pertain to your portfolios. Newsletters will be sent to investors regularly so that the investors are kept up-to-date on artist’s performance and local and global market movements.
Additionally there are a number of art publications and art websites that publish auction results and art price movements of works by Indian artists. Auction results from auction houses are an excellent guide to the sales price trends of the country’s artists. Also price movements can be monitored through the websites of art galleries, art collectors and auction houses.
How do we ensure that the artworks bought from Copal Art are authentic?
We associate with artists and reliable sources thereby ensuring our utmost confidence in the quality of work we sell. We regularly source individual artworks directly from the artists, thereby eliminating the question of authenticity and origin. Copal Art issues a Certificate of Authenticity with every piece of artwork that is purchased from Copal. It guarantees its authenticity this aids in facilitation of resale.
What if the artwork I buy from Copal gets damaged in transit?
Copal understands that buying and collecting artwork is not only expensive but an emotional commitment. If for any reason the artwork is damaged in transit Copal must be informed immediately within 5 days from receipt of the artwork to enable us take necessary action.
What is the difference between CAP and other art funds?
- The full form of CAP is Copal Art Portfolios Series III. The first biggest difference between Copal Art and the other Art Funds is that CAP is a delivery based art fund. The investor gets the physical delivery of the artwork he invests in.
- The other big difference is that Copal does not do collective investment. It constructs individual portfolios for the investors based on its research work. There are of course many other differences which have been listed in the query below.
What are the advantages of investing in art through CAP?
The advantages of investing through CAP are numerous some of which are listed below:
- Artwork is delivered to the investors/collectors
- Copal is a very big investor in art
- Copal has a ready art bank
- Dealings are transparent. The investor knows what he/she is buying and at what price.
- Investors/Collectors get the benefit of the research work carried out by us
- Investors get price advantage due to cash down purchases made by Copal.
- Proven track record
- No lock-in period
- Liquidity remains in the hands of the investors
- No entry/exit fee
- No management fee
- No expenses rate charged
- Copal takes no share from the profits of the investors
How do I sell my artwork?
Copal provides an option to the CAP collectors to sell their artworks, through its window known as ‘Sale by CAP collectors’. Art can also be sold by the investors/collectors through auctions, galleries or art dealers independently, as they have an established secondary art market. The authenticity certificates provided by Copal Art with the artworks are an excellent aid in facilitating sales.