As a gallerist one is often asked the question, “which artists should we buy for our investment portfolio?” The very fact that this question is being asked shows the change in mindset of viewing art as a decorative item the elite could indulge in and now as an alternative investment option. Which brings us to another question, should one invest in art at all?
To start with one has to recognise that art has its own peculiarities when one is viewing it as an asset with possible appreciation value. Firstly, art needs a greater amount of research before zeroing in on the artists one wishes to have in ones portfolio. Secondly, while investment consultants for stocks and shares are a dime-a-dozen, it will be very rare to find the art consultant who can guide you towards the right potential artist. Thirdly, art is definitely a long term investment, it would impossible to expect returns overnight. Fourthly, art is not a very liquid asset, moreover if the artist whose works you wish to sell has fallen from grace, it would be impossible to sell his works. Keeping all these factors in mind, the advice given is to invest a maximum of 10% of one’s annual income in art, after exhausting the conventional options of shares and bullion.

Indian art of course has carved its own niche in the 40 billion dollar global art industry. It is now a moot point that Indian artists too produce quality works that make headlines at international auctions. So more than a question of whether to invest in Indian art, it becomes more a question of which Indian artists to invest in?

When it comes to a choice of artists to invest in India has a wide range. There are of course the Indian Masters or the Moderns as some refer to them, which include the likes of Tyeb Mehta, F N Souza, M F Hussain, S H Raza, Jehangir Sabavalla, whose artworks command sky high prices. These are definitely out of the league of small investors with a limited budget, though one could consider opting for serigraph prints of their works, which are also in the price range of a few lakh rupees. These would be termed low-risk investments. Of these artists M F Hussain is considered to be the most ‘liquid’ amongst art dealers. A word of caution, fakes tend to surface at regular intervals of established artists so be aware.

The other fairly established block of artists includes those like Atul Dodiya, Subodh Gupta, Chintan Upadhyay, Jayshree Burman, Paresh Maity etc. They do command a price in the market and some of them are producing fairly radical work. The thing to watch out for in this bracket of artist is are they producing artwork in a consistent manner, which of their series had received greater appreciation, has the artist got stuck in a rut and is churning out similar works? All these factors would influence the future of the artist, hence the value and demand for his artworks.

Emerging Indian artists offer by far the most exciting options for investments. These are artists who still have the spark of creativity burning brightly within them. They are determined to establish themselves with their own particular style. More importantly, since they are not associated with a particular ‘brand’ of work, they are not afraid to experiment. Emerging artists would be termed high-risk investments given that they have yet to prove themselves as investment options. Yet this is precisely why, the amount of investment outlay is quite low. One could purchase artworks by emerging artists easily with a budget of Rs. 25,000 – Rs. 1 lakh. Such amounts would be paltry when compared to international artists on a similar level. So the price factor is an essential component of deciding on emerging Indian artists. Besides the simple economics applies here as well, buy when the demand and prices both are low, so you can make a profit when demand is high.

Appreciation of the artworks of an emerging artist may be a bit slow. But one can study the artist’s growth chart over a period of three to five years. Emerging artists like Aniket Khupse, Rajesh Pullarwar, H R Das have seen the prices of their artworks double in a period of 1 to 2 years.

According to Kay Saatchi, of Saatchi Galleries often credited with having ‘discovered’ Damien Hirst, “investing in an emerging artist is a challenge...but one has greater interaction with the artist and is able to build a relationship and grow with the artist.” The younger artists, take great pride in their work but are also more approachable. It would not be unusual to find buyers dropping by at the artist’s studio and watching the artist work. It helps the buyer to understand the art better. This level of interaction would be impossible with established artists.

Having said this, there are some things to consider before investing in an emerging artist. The most important thing of course is the skill of the artist, the art institute he attended would also play a role in this. An emerging artist needs to have integrity, determination and commitment towards his art. As a buyer, one would also need to have faith in the artist’s ability; it helps if one speaks with the dealer or gallery representing the artist. The decision to purchase an emerging artist’s work should ultimately depend on whether you like the work; you have to trust your ‘eye’ and your ‘gut’. Above all, invest in emerging artists only if you have the time and patience to nurture your investment.

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