Art Investment Fund Predictions
Neville Tuli, the CEO of a new Indian art investment fund called Osian recently made the comment that he would be displeased if the fund did not give a return of 35-40% per annum. Compared to art investment funds in the UK which only look at an annual return of 10-15%, 35-40% which could spark a coup in the investment world if all goes as planned. To make this deal even sweeter, the 35-40% return per annum is predicted to last for up to 10 years. The entry level for most of the Indian art funds is also much lower than the UK art investment funds at around $25,000 US dollars compared to $250,000 for the UK.
I am aware of how hot the Indian art market is right now but even as an advocate of art investment I would question the ability for the Osian art fund to give these sort of returns but even if they could give half what they are claiming they would still be well up on most other investment options.
The Crayon Capital Art Fund, another Indian art investment fund is just as optimistic as Osian and is looking at 30-40 per cent returns on an annualised basis. Expectations though, are riding at twice that percentage !!!
I can tell you that I will be keeping a close eye on the Indian art market, especially the Indian art funds.
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of artmarketblog.com, writes the art column for the magazine Antiques and Collectibles for Pleasure and Profit and contributes to many other publications.