Most of us loved to collect coins,
stamps and books for reading when we were kids; the same passion when
incorporated with money is called passion investment. Here we are not talking about small
investments and hence is applicable to individual with high disposable income.
There are different types of investment opportunities in like rare antiques, jewellery,
music, sports it’s a never ending list.
Now these investments do not
follow the same rule or the trends of the traditional market. To be very
precise passion investment shows reasonable amount a negative correlation to
tradition investments like mutual funds, bonds, commodities and equities. The
major reason why many HNI’s are looking into other investment options as the
traditional assets are all effected together in times of economics slow down or
crisis. Passion investments generally don’t follow the same trends of the traditional
market variations and market slow down, and thus acts as a profitable
investment even in times of economic crisis. One more reason that attracts
HNI’s to these investments is the pride or the satisfaction of ownership.
But in India the investors are
keener on investing in tangible assets and thus limit their options of
investing. There is a difference in opinion on if luxury products like yachts,
luxury cars, watch, etc can be called as passion investment, there is no
clarity on this point bus it totally depends on the investors and the financial
advisor. There are a few draw backs to passion investment too, as no investment
can be full proof.
The few drawbacks to it are that
these investments have low and at times no liquidity this is because, these
assets are not understood by all and the buyers are very limited and paying an
agent to find a potential buyer is a cost in itself. Secondly in case of a painting
or and artifacts they are assets of high physical risk as they have to be
preserved and protected. Now the investor has to be cautious and should
understand the asset and also research the credibility of the dealers before
investing or buying. These are a few things which an investor should take into
account while investing in paintings, ancient artifacts, coins, etc. The other
risks involved are authenticity of the asset and if the asset is owned or
stolen. These risks can be reduced or
eliminated by asking for the proof of ownership and authentication certificate
for the proof.
The crux of the whole story is
that the reason investors are now looking at passion investment as prominent
and important part of their portfolio is because it gives them the feeling of
ownership. Moreover the returns on these investments are not applicable to the
traditional market norms and the returns are comparatively higher.
Altamount Capital Management is the first of its kind Multi Family
Office in India .
Altamount offers Multi-Family Office services, comparable to international
standards, combined with Private
Investment Opportunities, offered to a network of ultra wealthy families. A
team of outstanding professionals at Altamount recognized the need for a
focused wealth management advisory firm for the burgeoning group of super-rich
families or the Ultra High Net Worth Individuals (HNWIs) in India . While
the focus of these families is to build and grow their businesses, a dedicated
effort and approach is needed to preserve and grow their wealth locally.
Altamount Capital Management was conceived to fill this gap.
