Need to diversify portfolio and basics of gathering art

Art has emerged as a valuable asset a large majority of people would love to possess, if they could afford it. Most of these people have started buying art because many wealth managers ask them to diversify their investment into it. For HNIs, looking to diversify their portfolio across different asset classes, it’s another lucrative avenue they can explore! Of course, there are eclectic buyers, who like and enjoy art, and hence buy it.

A news report (‘The buying game’ by Rachel Spence In The Financial Times, UK) had mentioned: “Although India's art market has come off the dizzy heights that it reached a few years ago, when a rash of art funds caused frenzied speculation, its still-booming national economy has made sure that a vast untapped source of new for modern and contemporary art still exists.

"Yet the lack of state-run infrastructure has left the art sector dependent on the initiative of private collectors like the Poddars of the Devi Art Foundation, who often put their works on public display.” Though younger artists like Subodh Gupta have grabbed headlines internationally, contemporary Indian art is still struggling to come out of the shadow of India’s more famed modernist painters like Husain and Souza.

Swapan Seth, whose own collection ranges from the late US photographer Herb Ritts to the poetic Indian artist Atul Dodiya thinks it’s better for those new to the domain o be guided by other experienced collectors rather than gallerists. This is necessary to prevent a tendency of short-sighted acquisitiveness, by no means an Indian prerogative.

This is important because financial advisors now ask their clients to consider investment in art for they believe it has good scope for capital appreciation. They generally advise not to put around not more than 10 to 15 percent of their total portfolio in art. Ideally, approach experts when it comes to investing in art, they suggest. This is because a crosscheck on authenticity of the work demands a high degree of knowledge and expertise. It is also advisable to check the artist’s track record and also the history of the work before buying it.

Become an informed buyer who knows how to appreciate art

In keeping with the rising political and economic stature of the country, a new breed of art collectors has emerged. Their passion and fortunes seem to have only risen along with India's booming economy. Mapping the contrasts and contradictions of the present-day scenario to better understand our art scene, renowned curator Alka Pande had stated in her introduction to ‘India Awakes’ show at Vienna’s Essl Museum:

“I live in a rapidly changing India and I am also confronted with a global culture. I ask myself whether I – as an urban Indian – can be within a single country as familiar with a rural India as with a spiritual India, with an India of the ethnic tribes with its ethnic community, a digital India, a religious India.” In backdrop of its vitality, the demand for contemporary Indian art remains high even as art market confidence has dropped as far as the European and U.S. contemporary markets are concerned.

With more than 3 million high net worth individuals (HNIs), possessing more than $1 million as estimated by the recent World Wealth report courtesy Capgemini and Merrill Lynch, Asian buyers (those from India and China, in particular) are very much in spotlight. In fact, art as an alluring asset has virtually entered into the mainstream, especially for tech-savvy younger people, who visit the portals to view not only paintings but also interactive, new media works.

The newly-rich buyers are turning to passion investment, seeking out eclectic and exclusive objects perceived to possess tangible long-term worth. A large majority of them are well-traveled business executives from software or banking industry who earn handsome remuneration. However, a vital area often ignored is due diligence regarding the ownership history. Provenance often affects its acceptability, and hence value of an artwork.

Evaluate its past history; check its origin and subsequent track record. Maintain proper documents of each work you buy. Seek assistance of specialists to determine the authenticity of a work, mostly on basis of the necessary appraisal and certification. Check whether the piece is in good condition. Know about the measures to be taken to prevent any damage to it in the future so that its value doesn’t diminish over time.

Going beyond the sheer investment angle, orientation and the process of building the knowledge base through constant interaction with curators, gallerists, dealers and artists themselves is equally vital.

Passion for art defines India’s premier collectors

A celebrity couple that cherishes a classy art collection is Parvez and Roshni Damania. It comprises superb paintings by MF Husain, Satish Gujral and Bose Krishnamachari, among others. The two have acquired other big names, such as FN Souza, Ram Kumar, Paritosh Sen, Sakti Burman, Jogen Choudhury etc over time.

The emphasis is invariably on acquiring unusual works like a rare painting by Ram Kumar and a FN Souza landscape. The underlying thought is to buy only those works that are pleasing to the eye and intellect. These are the pieces of art the two would want to grow with. In essence, they must be worth the price from their perspective!

While Parvez Damania makes most purchase decisions, the responsibility of their maintenance lies with Roshni. According to her, the focus now has shifted slightly to upcoming and talented artists. She has stated, suggesting they are keen to promote the younger artists: “Every art collector, I guess, happens to pass through different phases. Parvez is probably beyond the phase when he was keen to acquire top names.”

Rajshree Pathy is one of India’s distinguished collectors. Belonging to one of India’s leading industrial and philanthropist families, the PSG group, she has simultaneously cultivated her love for art. Her comprehensive collection has distinguished names, such as SH Raza, Rameshwar Broota, FN Souza, and Chintan Upadhyay in its fold. Summing up her journey, she has stated: “Art is not something that I've to keep under lock & key. It’s indeed rewarding intellectually, emotionally and financially.”

And what prompts her to buy? ”It’s something that talks to my heart. Of course, it’s good knowing that a choice I made has gone up in value.” Though Rajshree Pathy is averse to selling any of her pieces, she underlines its importance as an investment-worthy asset. According to her, the price of good art will never fall, and investing one-fourth of one’s income makes sense.

How to select the artist and piece of work you wish to acquire?

When investing in art, certain basic facts need to be kept in mind. While acquiring art as an asset, one has to have a long term investment perspective. Remember, established artists have sustainable value. On the other hand, younger artists have higher risk/higher return.

Here is a brief explanation on the process of selecting the artist and piece of work you want to buy:

•    Research regarding an artist, established or upcoming, gives definite clues to the intrinsic value of his or her work. It involves a thorough documentation of aspects such as the artist's age academic qualifications; awards, citations, scholarships received; participation in national international shows and workshops; subject matter of the work; ability to explain it and, of course, the thought processes, technique and style of work.

•    Factors like buyers’ list, critics’ perception of the artist and association with prominent art galleries also need to be considered.

•    There are several other critical aspects that need to be weighed before investing in art such as analyzing art market movements and trends and keeping a close eye on acquisitions made by distinguished art buyers and collectors.

•    It makes sense to approach experienced art advisors to understand the intricacies of the art market. They obviously are better placed to carry out a detailed research and review of recent auction results. Expert inputs are indeed crucial from the point of view of understanding artistic significance and market potential of a particular piece.

•    Of course, you may conduct your own study of the art market. This is not difficult since information about individual artists and broader art market trends is now easily available online.

Veer Munshi’s impressive career graph

Veer Munshi was born in Srinagar in 1955, and he now lives and works in Gurgaon. Between his geographical shifts lies a curious history of travel as a student, as a budding artist, and finally as the established member of a diasporic community that was expelled from its homeland by historical circumstances.

Known for a painting-based environment or vice versa, whichever way you look at it, Veer Munshi’s art practice is informed by his extensive and engaged travels; he has visited, among other countries, Jordan, Kenya, Morocco, Cambodia, China, Egypt, Mexico, Singapore, Thailand, Turkey, and Greece. His illustrious career spans almost three decades, during which he has lived and worked in Delhi, Srinagar, and Baroda. His practice spans a wide range of media like painting, sculpture, public-art projects, and installation backed by intellectual collaborations.


The artist did his graduation from Kashmir University (1976) and a BFA in Painting from the M S University, Baroda (1981). He has had more than 10 solos, apart from a series of grouop shows in India and abroad. These include ‘Ways of Resistance’ (SAHMAT, New Delhi/ 2002); ‘Art on the Move’, curated by Vivan Sundaram (SAHMAT, New Delhi/ 2002); the 11th Asian Art Biennale (Dhaka/ 2004); ‘Identity Alienation Amity’ (Mumbai/2005); Tehelka’s ‘Art for Freedom’ (London/ 2008); ‘Image, Music and Text’ , curated by Ram Rahman (SAHMAT, New Delhi/ 2009); and ‘ZIP Files’, edited by Ranjit Hoskote (foundation b&g, Mumbai/ 2009).

An exhibition of his works courtesy Latitude 28 and foundation b&g was curated by Ranjit Hoskote. Elaborating on the series, the publisher of foundation b&g, Harsha Bhatkal, had called it 'a powerful statement, in which the artist presents an environment, capturing the violence that surrounds us in the turbulent world today.' A touching photographic series which he publicly showed for the first time, offered a detailed documentation of Pandit houses in a unique way -both (‘The Chamber’and ‘Pandit Houses’) projected as a cry for peace and secularism.

A great artist and a wary individual

Edvard Munch, considered a pioneer in the Expressionist movement in Modern Painting, was recognized in Germany and central Europe at an early stage as one of the makers of a new epoch. Here's a quick look at his art and life:

• Born on December 12th, 1863, in Løten, Norway, to Christian Munch, a military doctor, he spent most of his childhood living in Kristiania, now better known as Oslo. He was an anxious youth, fearful of many things after his mother, his brother, and one of his sisters died of tuberculosis. Edvard was himself a sickly child.  Those early events inspired Munch to create lifeless or frightened people in some of his works. 

• Many of his paintings and drawings help viewers understand Edvard Munch's inner world. The Norwegian artist’s works are thought to have expressed his deepest and most painful feelings. However, many of his later works reveal brightly colored landscapes and other subjects that indicate he found greater inner peace as he grew older.

• At the age of 17 was tutored in the arts by Christian Krohg, a naturalist painter, who was quite famous in Norway.  Edvard's talent was evident by his early realist paintings, but the traumatic events that plagued Edvard's youth had an even deeper impact on his artistic vision than any other artist or artistic movement could have. 

• In the spring of 1896 Munch left Berlin and settled down in Paris, where his associates again included Strindberg. He was now devoting greater attention to the graphic medium, at the expense of painting. He was back in Norway in 1898. Around the turn of the century Munch tried to finish the Frieze. He painted a number of pictures, several of them in larger format and to some extent featuring the art nouveau aesthetics of the time.

• Edvard Munch, who died in 1944 at 80, said that the idea for ‘The Scream’, literally the picture of torment and dread, came to him while walking at sunset with friends. He lagged behind them “shivering with fear,” he wrote, and “then I heard the enormous, infinite scream of nature.” 

•  Some see the figure as a symbol of Modern Man, others as a kind of cartoon E. T. Either way there’s plenty of tasty narrative potential. Did something awful just happen? Is the shrieker nuts? Will he (or she) be leaping over the bridge rail next?  The picture nevertheless still holds a legitimate and complex place in the European painting tradition and in Munch’s estimable and interesting career.

Indian art market remains strong despite challenges

In spite of the prevailing negative economic trend, most experts had remained positive about the broader art scenario earlier this year and they have been proved right.

A number of artists from the country now show their works on a wider global level, including Bharti Kher, Rashid Rana, and Jitish Kallat. In another heartening development, the market has strongly reversed a prolonged negative trend, posting impressive results in the last 12 months, according to the latest Indian Auction Analysis. After six seasons of consecutive decline, it has showed the early signs of a possible revival.

India’s art market was hit after the 2008 economic collapse. Since then it has attempted to readjust and refocus itself. The earlier confidence survey for Indian art market in May 2012 by ArtTactic suggested that it would take at least two years to fully recover. The overall indicator was marginally down by 2 percent (a 9 percent decrease in confidence indicator for the Modern market, and a 24 percent fall for the Contemporary market. In fact, the round of auctions in March 2012 was quite disappointing. The market had a poor season, with sales volume of $10,438,532, 27 percent lower than March 2011.

An IANS news report last year had observed that  some ‘curious dichotomy’ had gripped the auction market, marked by a sudden boom in sales art at record prices even as global economies registered a slump. It had pointed to a new generation of buyers emerging on the scene, opening up their purse strings to acquire quality artworks. A quality consciousness seldom seen before is driving auction markets worldwide even as new segments of buyers - private archives and collectors - have emerged,” it mentioned.

The phenomenon was an outcome of the caution exercised by buyers after the price bubble burst, after the economic slowdown in 2008. The old masters, modernists as well as contemporary pioneers continued to command steady prices in the market still ruled by old masters like Tyeb Mehta, Raza, Souza, Manjit Bawa, Husain, Ram Kumar, Anjolie Ela Menon etc and legends like the Tagore brothers, Jamini Roy, and Nanadalal Bose, it rightfully stated.