Key aspects that need to be kept in mind while buying art - I

Investing in art is said to be an art in itself. It’s a specialized arena that demands knowledge, expertise, research and fieldwork. The investment parameters need to be evaluated in the context of not just an individual work, but keeping in mind national as well as international trends.

Following are some of the aspects that need to be kept in mind while buying art:

- Art is still not considered a primary asset class and definitely not one just to make money.
Returns from asset classes like equities and mutual funds are boosted by interim dividend payout, which is not the case with art. The monetization takes place only after you sale it.

- Investment avenues such as equities, mutual funds, debt, commodities and currency are institutionalized with strong regulators. Art is still in a nascent phase on this count.

- Art also requires careful handling and a high degree of maintenance. If it gets damaged owing to environmental changes of careless handling, the value would get diminished.

- Art you buy also needs to be authenticated by a reliable source or else you would be saddled with a fake. There is some paperwork involved the intricacies of which may not be easily fathomed by a layperson.

Irrespective of these concerns, art has its own unique position in the whole spectrum of investment avenues. In fact, it has grown in stature and acceptance as a dependable asset class. Investing in art is more of a process that should be enjoyed. When one wants to buy art, this is something that needs to be factored in.

Significantly, art is now a much more organized market with ample information and statistics including auction results, artists’ prices, trends etc – publicly available thanks to the Internet. Apart from well-known artists and high value masterpieces, you can dig out information about upcoming and talented artists by visiting different gallery websites to buy their works and be ensured of excellent returns in due course of time. That's the real beauty of art for you!