Hurun India Report titled ‘India Luxury Consumer Survey Report’ found that 64% of wealthy individuals have shown interest in collecting valuables such as art, jewellery and music instruments.
While 20% of the HNIs who participated in the survey collected art, 19% of them invested in jewellery. Similarly, 10% collected precious stones, 7% vintage sports equipment, 4% letter and historical possessions of freedom fighters and 4% music instruments.
Overall, art and commodities accounted for 6% of HNIs personal wealth of which art contributed 3% of personal wealth. Over the next three years, the report predicted that HNIs exposure to art would go up to 8%.
Interestingly, exposure of personal wealth to art is more than investment in currency, VCs/PEs and overseas investments, shows the report.
Vishal Dhawan of Plan Ahead Wealth Advisors pointed out that most HNIs who invest in art are individuals who know artists personally and appreciate their work. At times, they even allocate 30% of their portfolio towards art, he added. Dhawan said that his firm does not recommend clients to invest in art due to its complex nature.