What is common to Harsad Mehta and Lalit Modi? Former
made the investing in equity and the Mumbai Stock Exchange very popular and
controversial at the same time and the later monetized the craze of cricket in India through
Indian Premier League in short IPL.
Many other sports have gone through the same path successfully. Indian Art
needs a benefactor like that to make the Mutual Funds in the country and the
young investor communities sit up and take a view of Indian Art as an asset
category that could create immense value in short to medium term and
substantial amount of wealth in the long haul. Indian Art scene is full of news
and promise as it commands huge following and attracts bids with mind boggling
figures in International Auctions. That apart, the traditional International
Art collectors like Qatar Govt., and New York Art Museum with deep pockets have
shown considerable interest in collecting Indian Art across various mediums to
show case Indian ethnicity, its diverse & rich culture, colors and a
mindset of its own to their discerning guests, art lovers and art collectors.
If Indian Mutual Fund Industry could invest 0.01 to 0.05 of their resources in
Indian Art for next five years; then, it could create a new asset category with
substantial returns. Investment in Art would be as complex & challenging
exercise as it is with equity. Mutual Funds allocate their resources in equity
with a portfolio of Small Caps, Medium Caps and Large Caps; identically, in Art
they have to create a portfolio of assets in Art with Small Budget Art Work---
collections of emerging artists, Medium Budget Art Work--- collections of
nationally recognized artists, Large Budget Artwork--- collections of
internationally famous artists. Mutual Funds have to recruit professional
investment managers and Asset Management Company as they do for their equity
portfolio. This would create a new opportunity for Mutual Funds to make money
while developing a new discipline of excellence that would deliver a new
excitement and drive in the market place. At the same time it will allure a
mass of new and young investors with double income and considerable amount of
disposable funds for investment. Mutual Funds need to recruit domain experts,
tie up with art galleries across the country and abroad for buying and
displaying their portfolio of Art from time to time. Further, they could set up
auction house to monetize their own investment and for other individual art investors
to facilitate developing an eco-system for a new asset category that hold
immense promise and performance. This will have a far reaching socio-economic
impact while monetizing the creative talent pool of the country in a scale and
a size that has not been seen before or can be predicted; but, two things are
for sure this mammoth exercise could ignite the creative spirit in the country
and a novel way for value creation.
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