Reasons why passion assets are a good investment
Investments are not just confined to traditional finance, like real estate stocks. Etc. Where regular financial investments are completely focused on corporate growth and economic productivity. But Passion Investment is an alternative investment option. And as their name suggests, investments of passion include investing in an asset where the output is more than just a financial return. And their value is determined by their rareness, quality, and their representation to the community who appreciates them.
What is Passion Assets?
Just like any other investment, passion assets are also looked upon to gain a return. These assets bring dual benefits of joy and contentment because of ownership and also by providing a return for the investment to the owners. Such investments are termed as Passion Investments. Passion assets are unique luxury assets and their esteem is greatly recognized by communities of passionate investors and believers. Hence, many people pursue luxury assets and this has increased the demand and the value of these items.
Investing in your passion is exceptionally profitable. Not only it aids investors to relish their wealth, but it also provides diversification in their return potential. Passion assets are also termed as collectibles, which includes almost any product of desire that investors take pleasure in owning them. Investors can buy assets to satisfy their desires, convey and express themselves regarding their tastes, status in society and wealth.
Investment types and avenues
Passion synonymous with luxury. When this word is spoken out with regards to the investment context, pictures of gleaming gems, antiques, art, and luxurious cars come to mind. Diversified investments fall under the category of passion assets.
Below is the list of popular types of Passion assets:
- Precious items like jewelry and watches.
- Fine art includes modern art, old masters, post-war contemporary and traditional artworks.
- Trophy property, such as overseas homes.
- Collectibles include fine wine, stamps, coins, classic cars, rugs, carpets, antiques and rare musical instruments.
And the list continues.
Reasons to invest in Passion Assets
In the realm of seeking values from real estate, investing in Passion assets can be a smart move. At the end of Q4 2018, Rare coins have seen its increase in value about 12% over the course of the year. Wine and art which are traditional passion investments have seen a 9% increase in its value, watches have seen a 5% increase in its value. Ideally, every relatable product has witnessed a positive growth in its value.
Passion assets fall under the vast category of alternative assets. And investing in them is substantial about the delight of owning a specific asset. These collectibles provide variegation benefits and aid as a hedge against inflation. When the investment is done directly, and not through the investment funds. Passion assets give a touch of tangibility and confidentiality that cannot be matched with any asset. Their functioning does not oscillate when compared to stock and bonds. The value of the Passion assets remains the same during the time of expected inflation. And hence, it caters to an alternative form of portfolio diversification across assets.
These funds have several benefits, including the pooling of transaction costs and vary across genres in a market. Irrespective of their constant growth, it’s important that the investors have insights regarding which asset class is doing exceptionally well and which aren’t. Not all passion assets have stagnated value, and this change is seen since different assets attract different investors in different parts of the world which have varied cultural backgrounds and interests. If the investors are looking out more than just joy by investing in passion assets. Then it’s important for them to seek advice from the experts’ team, who can help them in their investment strategy.
Hence, Passion investments are a vital segment for wealthy investors and managers and are earning rapid progress in investment portfolios throughout the country. As disposable incomes are soaring up, many HNIs are moving towards investing in passion assets to diversify their portfolio and satisfy their desire to finer things in life. Impressively Indian HNIs mostly restrict their passion investment to tangible assets.
While considering, to include passion assets as an investment option, it’s important to know that, their return potential lies in their capital growth, which might take years to emerge and it’s not guaranteed that their value won’t decrease. Though these investments have their own setbacks, with the right specialist knowledge and insurance, it can be an efficient way to appreciate your wealth and simultaneously have a return on your investment. Passion assets might not have huge financial returns, but investments in it often yields the most valuable premium of all.