Returns from masstige art

Sifting the prestigious from the masstige could point the way to shrewd art investors

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Punters looking for quick returns on investments in art can end up being disappointed because they are not able to separate reality from hype. Rare and exceptional works of art do enjoy high returns, but they also come at a steep entry point. What returns can justify a spend of, say, Rs 10 crore on a painting, with a five-year turnaround?

No wonder investors are looking for big-ticket game-changers, but in the absence of a "science" for art investment, this remains a risk-prone proposition. Artists who start out promisingly may fade away, trends may change, but, more important, excessive popularity can damage prospects by turning away collectors as an artist's work enters the grey zone that in the luxury market is described as masstige.

In simple terms, masstige art appeals to a diverse range of art aficionados because its aesthetics are appealing, the costs are not prohibitive (to begin with), and there is the possibility of growing the artist's market. When every Indian wants a painting by Thota Vaikuntam, for instance, the recognisability of that artist is established, but this very popularity can scare away "serious" collectors who tend to shy from the mainstream. So, while an artist's reputation and collecting market continues to grow, yet, paradoxically, he now wields less influence. If I were to draw a parallel with a luxury brand, then this would be a case of what happened with Michael Kors. A few years ago, every fashionista wanted an MK bag or pair of pumps, now they're so commonplace that even office girls shun them.

Therefore, the investor's challenge lies in tracing rare, early works by Vaikuntam that will have more value for precisely that quality, even though tradability might at first be limited to his better-known, later works. However, it is this that investors must search for, and enter the market through low entry points. I was recently shown prints by F N Souza dating back to the 1940s. How many collectors even know that he did prints, or that most of those were unfortunately destroyed? The result: a cache of small works that sold at an affordable value, but which will arguably guarantee a higher return on investment than more expensive or recognisable art.

To work at the entry level, the shrewd investor must analyse the market and hedge his bets across a range of assets and artists. Following or collecting according to popular trends will not pay the same dividends as collectors are easily swayed, or bored, but a selection backed by curatorial expertise from someone who does not gain financially from such asset transactions can be priceless. Art intellectuals may suffer some of the same faults as their counterparts from other industries, but their formidable knowledge can be turned into an advantage, particularly when it comes to documentation.

Nor are there any set names and rules when it comes to building a portfolio other than the standard caution of diversifying across categories. For this, investors will need to work within the network of available human resource (very limited) and not be distracted by the big bauble trophy buy that may garner attention and be good for the industry as a whole, but may serve the investor less well than hoped.

A major weakness in the art market remains efficient liquidity: returns can be injurious to health if not strategically spaced out. Yet, the opportunities remain staggering when you consider that a painting by V S Gaitonde sold 20 years ago for Rs 2 lakh. Compare that with a commensurate work at his current benchmark of over Rs 23 crore and you'll understand why investing in art makes so much sense.

Kishore Singh is a Delhi-based writer and art critic. These views are personal and do not reflect those of the organisation with which he is associated