Art is more than creativity alone. Undoubtedly, the artwork itself is an amalgamation of style, colour, background, angles and shapes. And though the value of a masterpiece is seen in its artistic creativity, its worth in terms of an investment is also recognized across the world. In fact, the global art market is a $2 trillion behemoth. The art market’s index, ArtPrice 100, has beaten the S&P500 over the last 25 years by providing annualized returns of 14.5% against 9.5% for the stock markets.
Art lovers love to own exceptional artwork. But the lack of access to art auctions, as well as the steep pricing are a few practical hurdles that are stumbles for connoisseurs of art.
Yet, art is an alternative investment asset that has been around for years, but not fully explored by many. Investing in art is long term and just like bonds and stocks it appreciates or increases in value through time. Also, unlike stocks and bonds, art investments do not oscillate according to the market conditions.
Buying artworks to diversify and add to your investment portfolio can definitely turn into a profitable venture.
Invest in art with Hedonova
Hedonova is a hedge fund that invests in all kinds of alternative assets. Multiple investors invest their money into the fund, which helps purchase paintings and art worth millions of dollars. By pooling the investors’ money, Hedonova eases the main troubles of art lovers and investors – managing and arranging huge funds to buy expensive artwork and gaining access to art auctions.
How can one start investing in Hedonova? By investing Rs. 75000 or $1000 in Hedonova each investor can get exposure to many artworks.
Art is an illiquid asset and difficult to convert into cash easily. However, art has a history as a transacting asset class. Auction houses, such as the Sotheby’s have been around for more than 250 years. Also, artworks have been profitable with paintings being sold for millions of dollars. The scope of the art market is tremendous and accounts for about 75% of yearly transaction value within the collectables market. The value of artwork is unique as it usually has no further editions or copies, even in the high and affluent markets.
At Hedonova the team invests in those rare artists who go on to achieve fame. The research aims to find the Picasso and Van Gogh of the world, whose artworks achieve the million-dollar tags and whose paintings are desired by ultra-high net worth individuals. Essentially, Hedonova invests in artworks by the top 100 artists that have a great record of sale at auction houses, gallery representations, rising price trends and cultural relevance. Some of such artists and their works include, Jean-Michel Basquiat’s Untitled, Claude Monet’s Coup, Arpita Singh’s Women with Boats and Ducks, Cecily Brown’s Girl Trouble and more.
Not just art investments
Besides art, Hedonova invests in other alternative investment assets. Most investors invest in stocks, gold, mutual funds, government bonds and mutual funds. However, alternative investment assets are financial assets that are not under the conventional income, cash or equity categories. Instead, real estate, hedge funds, venture capitals, commodities etc. fall under alternative art investments.
Hedonova invests in multiple alternative investment assets. These include P2P lending, wine, real estate – data centres, litigation funding etc.
Alternative investment assets are suitable for investors for a number of reasons. The diversification of investment outside conventional investing agencies helps to mitigate the risk and ensures that is distributed. Also, the alternative investment assets have outperformed indices, such as S&P 500 and NIFTY 50. Whether it is in real estate or contemporary art annual appreciation, these alternative investment assets have bettered the US and global equities in the recent past.
Furthermore, the alternative investment assets are not affected by stock market crashes or economic overturns. Of course, each alternative asset is influenced by different specific factors that are unique to them. And hence, adding them to your investment portfolio brings diversification to the traditional portfolio, involves less risk and potentially higher performance.
Features of Hedonova fund
Hedonova is a hedge fund that helps allocate our investors’ money in the appropriate alternative investment assets. Starting in 2018, Hedonova has managed more than $81 million in assets and generated an annual return of 53%.
Some of the features of Hedonova are:
- Avoid the onus of high-end pricing by investing only Rs. 75000 ($1000).
- Seek the help and guidance of our expert team of professionals who understand and have deep knowledge about alternative investment assets.
- Hedonova is a US-based hedge fund but is open to investors anywhere in the world.
- International investors pay no taxes in the USA but are applicable for capital gains tax in their home country.
- Though alternative investment assets are not basically liquid, Hedonova uses several liquidity measures to allow investors to enter and exit the investment without any complications.
Investing in art can be tricky without proper research and understanding of alternative investment assets. At Hedonova the team of experts are experienced and passionate about making art a profitable and lucrative investment whose benefits can be reaped and managed in the future.