Banking on art for good returns

The consulting editor of Forbes India, Sanjoy Bhattacharyya, is betting on art for good returns. However, he hastened to add that it was not still within the reach of most investors.

A pertinent news report, entitled ‘HNIs look to diversify investments’ by Madhu T of The Times of India, has gathered opinion of several wealth managers with foreign banks. According to them, many high net worth individuals are trying to diversify their portfolios across a range of asset classes.

The asset classes they are look to diversify into start from regular stocks to many safer fixed incomes instruments, plus a whole gamut of commodities. Importantly, they are now looking for other avenues. Vishal Kapoor, general manager (wealth management) of Standard Chartered is quoted as saying: "The dip in the Indian stock market has helped many investors realize the importance of the concept of diversification. Now there is a perceptible change in the investors’ behavior and mindset. "

Another financial planner mentions: “These days, once basic financial planning is done, the imagination of wealth managers takes over. In fact, we now have several clients who are keenly lapping up exotic customized products preparned by their wealth managers in banks."

Pankaj Narain, director, head private clients (banking and investments), Deutsche Bank (India) concurs with the fact that HNIs have indeed began spreading their investments to diverse asset classes. In fact, many wealth managers now talk of investing in art to diversify.

Narain is himself an art collector. He says that it is still to pick up a big way in the country. He believes it will be some time before contemporary Indian art forms an integral part of investment portfolio of investors. Signs for the future are positive, though…