Put your money where your heART is

So,with so many art funds mushrooming, do the existing art funds have to fear? Neville Tuli, Chairman of Osian's, told CNBC-TV18, "We are seeing a lot of people entering the market, joining a bandwagon. That is part of the transition of growth, it is like how the financial markets grew. Today, you have thousands of funds and the same process will happen in the art world as legalization of various things come to place."

Robust economy and the emergence of the moneyed class are boosting sales of contemporary Indian art to new highs. According to experts, the boom in the indian art scenario is closely linked to the global art cycle, which is further linked with the growing economies in the world, India being one of them.

But, they say that the art scene in India has still some way to go. Liquidity is an important concern among art investors as there are not enough buyers. Maybe, with more financial institutions getting involved and SEBI putting more importance on art as an asset, this can be solved. 

Tuli said, "Due diligence homework should be done and the financial institutions should get involved. SEBI's awareness about art as an asset should move forward and once regulatory processes are bought into place, it will boom like any other financial instrument or asset or capital asset."

Further adding to it, Dinesh Vazirani, Director of Saffronart Gallery, told CNBC-TV18, " You need a broad base player including the government to actually step in and help build up the infrastructure. But there really is a mindset change in Indians. The feeling that art has inherent values is something that is ingrained in them right now. Of course Indians all over the world and within India are generating enormous amount of the wealth."

While financial institutions are making their presence known in art investment, the art insurance segment is not to stay behind. Some insurance companies with their fous on art have emerged. ICICI Lombard is one which offers art insurance. Oriental Insurance and Bajaj Allianz, are the others. 

By-Piyu Sen