Skip to main content

Collectibles as investments

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

A host of items such as stamps, coins, currency and even matchboxes can fetch good value

stolen from his car. Fortunately, he found it a couple of days later, in a gutter next to his house. The contents were intact. Not surprising, considering all it had was an album containing old, soiled and not- in- use currencies.

Jhunjhunwala, a philatelist and numismatist, says, " I am pretty sure the thief must have been disappointed with what was in the briefcase, which is why he threw it away. But if he knew a little about such hobbies, he could have

got a good deal for it in some chor bazaar. Today, if I sell that album, it will fetch me anything above 20 crore." Hobbies like philately ( collecting stamps and other postal articles as a hobby or an investment) and numismatics (the study or collecting of coins, medals, paper money) can be lucrative.

In addition to fetching recognition and medals at national and international exhibitions, these can also turn out to be valuable investments.

Before investing in stocks, you read up about the company's financial details and reports on it by analysts. You keep track of the stock price movement and factors affecting before selling the stock. Similarly, for investing in stamps, coins or currency, you have to first know their history to understand why the items are valuable. While selling, too, you have to check how easily that coin or stamp is available, because that determines the final value.

According to Sudip Kheria, a 24 per cent annual returns on such collectibles.

"However, to make exponential returns, one has to stay invested in that market for at least 2025 years, long enough a period to collect items and at the same time, see the value of your collectibles grow," he says.

The trick lies in knowing what to collect. Such hobbies are more popular abroad. One of the companies listed on London's Alternative Investment Market is Stanley Gibbons, a stamp and coins dealers. Its website also offers investment schemes suited to different kinds of investors. While it is not that popular in India, you can start your collection with an initial corpus of 10,000 and invest a similar amount annually to expand it.

Investing in collectibles is not easy.

Unless you are a collector who is genuinely interested in what you collect, it is difficult to build a valuable collection.

So, while all investors are collectors, not all collectors are investors.

Jhunjhunwala has been a collector for 40 years. However, he has sold only one album of currencies so far. " I am not interested in selling my collection, ever. None of my family members shares my interest. So, I have not mentioned my collectibles in my will. After me, I have identified a Bangalore- based collector, who shares the same interest, to look after my collection," he says.

To start a collection, first choose a India during the British era, is valuable because of the history and not because of the value of the gold in these coins. In the case of postal collections, stamps and letters from the period of Queen Victoria are very valuable because they are very old.

Some articles are valuable due to particular incidents. For instance, stamps and coins sold following the retirement of a Pope are seen as highly collectable because they are issued during the brief period after one Pope steps down and before a new one is elected. These stamps are called ' Sede vacante' and went on sale on March 1, following the retirement of Pope Benedict XVI. According to reports, the initial print run was for 230,000 complete series of the stamps, whose use national and international philatelic exhibitions.

There are essentially three kind of collectors. The first is the schoolboy kind, who collect only because they like the stamp or coin. The second kind collect to participate in exhibitions. These regularly follow auctions, keep track of a stamp or coin's available stock, but don't usually sell and exhibitions. They sell wanted to print only two cent be much more and if comes for auction, it will attract tremendous attention from collectors all over the world," says Jayakar. It is possible to buy stamps and coins from private collectors but a public auction will always fetch a better price. So, one must always keep track of auctions. You can get catalogues from the auction houses and study these in advance to familiarise yourself with the articles and choose what you want to buy. In some cases, the article could be priced cheaper internationally than in India, due to the stock available. Sometimes, an unknown collector might offload his collection in the market, which could dampen the price.

Jayakar cites the example of a stamp dealership based in London. A few years ago, they had come out with aportfolio of 10 stamps and offered any investor who purchased it a definite appreciation in value in five years.

They were willing to underwrite the portfolio. But the scheme went bust because an unknown collector in Hong Kong had some of these stamps and these came into the market, leading to afall in the price. The dealer eventually withdrew the scheme.

In India, Todywalla, Rajgors, Bhargava and Marudhara are a few dealers who carry out auctions, giving collectors a platform to exhibit their collections. Jhunjhunwala suggests getting introduced to philatelic societies, which will then update you about auctions and any other information you might need about building your collections. " Even for investors, there will never be a correct time to sell. Hence, taking tactical and calculated risk- based decisions will help you make good money. This, again, will depend on how well you know your collectible and its value in the market," says Jhunjhunwala.

Proper storage of such items is very important. Stamps should be kept free from sunlight and moisture. The ideal temperature is 15- 17 degrees Celsius. They must be protected from white ants and silver fish and stored in nonacidic plastic. The condition of the stamp will also determine the value of the stamp. Both coins and stamps should preferably be kept in vaults or lockers to prevent theft. Coins, too, should not be exposed to air, to prevent getting rusted. If you have a collection whose value you are not sure of, you can get it valued by a dealer. However, make sure you've got a genuine dealer and don't let the dealer take advantage of you. That is possible only if you know the subject well.

"It is a lucrative investment, provided intelligently invested," says Jayakar. Another popular collectible is prints of paintings. These are cheaper than paintings as they are much smaller.

|One should study the collectible subject in depth |Like shares/ stocks, investing in these is risky, as returns are not fixed |One can expect 12- 24% annual returns, depending on the rarity and value of the collectible |A basic currency collection can start with an initial investment of 10,000 annually |Coins & stamps have good resale value |Regular collectors should follow auctions and keep track of their collectibles floating stock in the market |New collector should register himself in philatelic & numismatic societies |A collector should keep track of catalogues by registering with dealers & auctioners

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now