Risks and returns in art investment

(Nalini S Malaviya)

Although, the art market cannot be directly compared with buying stocks, shares or mutual funds, there are a few similarities between them. In both the cases there is an element of risk involved and one needs to do a complete research before investing.
However, if one is buying art for its intrinsic value, then there is no risk attached and one can enjoy the artwork as long as they wish. However, when buying art for investment, the risk is linked to the investment cost and the projected returns.
Here too one can divide the investment portfolio according to the risk category and thereby distribute the risk factor.

The percentage of risk is highest when buying new and lesser-known artists. Investing in an artist who is well established and is doing well at international auctions also, is a safe option, however their prices may have already spiralled beyond the range of most investors. In such a case one can look at the next level of artists who are poised to hit the big league.
Having said that, the top category of senior artists is the safest option to invest in provided one’s budget has the flexibility. Next, one can also consider names that are performing consistently at international and domestic auctions and are associated with good quality works. Typically, this mid–segment bracket comprises of works of artists who are fairly established and are backed by an encouraging track record.

The high-risk segment would comprise works by promising artists who are in the process of getting established and are beginning to make a name for themselves. Investing in this group has the highest risk, but the returns can also be dramatic in the long term, provided the artist sustains himself and the Indian art market continues to grow at the present rate. In general, young artists who are promoted by credible art galleries are most likely to perform well in terms of their prices.

(Published in Financial Times)

Art Buzz (Mumbai) Ravi Shah

Art Buzz (Bangalore) Krishnappa

Art Buzz (Bangalore) Across the Threshold

Mahua Art Gallery invites you to a preview of Across the Threshold, an exhibition of contemporary paintings and sculptures celebrating the Launch of its 2000 sq ft gallery at Sadashivnagar, Bangalore on the 2nd of August from 7pm onwards at Sadashivnagar, Bangalore.

The exhibition will continue from the 3rd of August to 16th of August, 2008.

A Veritable Treasure Trove - Art Collection at Karnataka Chitrakala Parishath, Bangalore

How many people know that Karnataka Chitrakala Parishath houses collections of art from early 19th century onwards? I have been a frequent visitor to their campus and have often visited the art exhibitions that are organized here on a regular basis, but somehow never went upstairs, which is where the galleries are. So, last week, at the behest of Harish Padmanabha, who incidentally is an avid art collector, I went there in search of Krishna Reddy’s prints.

I found that the Parishath has permanent galleries that showcase paintings by the Russian painter Nicholas Roerich, his son Svetoslav Roerich (whose estate is in the news for all the wrong reasons!), HK Kejriwal’s art collection, traditional and folk paintings, and leather puppets from the private collection of Nanjunda Rao.
 

The Roerichs’ collections are quite comprehensive and one can see Nicholas’s brilliant landscapes, Svetoslav’s fascinating portraits including those of Devika Rani and Nehru, and the Himalayan landscapes.
The Kejriwal collection features mainly the Bengal artists and a few other prominent artists from across the country. Whether these are the best works from the concerned artists is debatable, but the fact remains that it offers a fantastic opportunity to students and art lovers to get acquainted with a cross-section of some of India’s finest artists. Amrita Sher-Gil, Jamini Roy, Rabindranath Tagore, Gaganendranath Tagore, AR Chughtai, MF Husain, SH Raza, FN Souza, Shayamal Dutta Ray are just some of the names on these walls. The gamut of works (1830 to 1995) offers valuable insights into the history of art as it evolved from modernism to contemporary style. And, the art of Bengal, in particular that ranges from its folk art traditional format to its contemporary form.


The abstract graphic prints by Krishna Reddy, an internationally acclaimed printmaker are spectacular and a must watch. They are placed towards the far end of the exhibit space and one must remember to see them.
By the time I finished the contemporary art gallery my energy levels were flagging and I could not do justice to the traditional artworks, so another visit is on the cards.

Incidentally, the Parishath also has an ‘Art Mart’ where it sells works by upcoming and fairly established artists. Priced between Rs 2000 to a lakh or so, it offers a variety of pleasant pictures at an affordable price. But, if you looking for art as an investment then you need to come here armed with all the information. Also, there are various publications on sale, such as from the Lalit Kala Academy and Marg, books on art and prints.

(Published in Bangalore Mirror)

Updated on 8th Jul 2013 for title tags and labels