Wine is now fine for investment too(2)

Investors can look into options like investing directly or through recognised wine investment fund managers available globally by taking advantage of the Exchange Control Liberalisation in India. According to Kapur, anything between Rs 5 lakh and Rs 10 lakh is a good amount to start investing.

The pre-condition of investing in this asset class, however, is a thorough knowledge of wines, while choosing a reliable wine merchant for your transactions is also crucial. It is these merchants who procure, store and even sell the wine for an investor.

Traditionally investing in wine has been a European pastime, but there is no obstacle to, say, Indian investors getting involved. “They could use the services of a company like ourselves (or indeed any other reputable merchant/supplier/advisor). Remember that as you shouldn’t generally take physical delivery of the wine (they should remain in a professional storage facility within Europe, maintaining their provenance and thus maximizing the opportunity for profit), it’s very important to deal with a company you can trust,” says Lenagan.

Among other precautions, you need to focus on the top wines from the best vintages as only a fraction of wines produced worldwide increases in value, if kept. Also make sure your wines are stored professionally under the correct conditions. If you are looking to sell your wines on for a profit, then it is certainly not advisable to store wines at home as it may drastically affect the re-sale value of those wines.