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So how does one start investing in Fine Wines?

Updated: Apr 11

The first question I’d ask you is whether you like wine? Do you have a lively interest in wine? Do you have an ample amount of curiosity about wine?

If yes, then read on…

If you are going to invest in wine it is best to think of it as part of your overall portfolio. To make things simple, when considering how to apportion your investments, you would logically diversify your investments into fixed assets, equities, bond’s, mutual funds and also invest a small part of it into SWAG’s which is an acronym for SILVER, WINE, ART & GOLD. Among these, wine has appreciated quite sharply with a relatively limited volatility. Take for example the best performing wine in the last 20 years, 2004 Carruades de Lafite held over a five year timeframe appreciated by 3000-4000% Starting at £140 a case, it now trades at over £4,500. Carruades has outperformed Gold and any of the major world indices over this time frame.

Wines also comes under the category of passion assets. Investing in your passions can be extremely rewarding. Not only does it help you enjoy your wealth, but it also provides diversification and return potential. The most investible fine wines have done well over the past decade, they’re known to have low correlation with traditional assets. Finite supply of the great investment wines, portability and relatively low storage costs are an advantage. Investments in wine can be tax-friendly if you keep your cases in a bonded warehouse, it will be free of duty and VAT, while profits are also capital gains tax-free.

So how do you get started???

When you invest, individual portfolios are created to match your personal investment objectives, targeting a return in excess of 10% per annum (net of fees), over a recommended term of at least five years.

A portfolio manager who has access to the most up-to-date market data and analysis will be appointed and you will be advised on the best possible investment strategy. These strategies are revised on a regular basis as the market develops; weekly updates and regular reviews ensure that your portfolio is working its hardest. The portfolio manager will continue to actively monitor your account and work with you in order to provide optimum returns by advising when the best time is to buy, sell or reinvest. The portfolio service covers the full expense of storing your wine, all handling and administration costs, and all wines are completely insured at their current market value for the full duration of the investment. All clients have complete security with the segregation of funds and assets at all times.

We at Wine Equation have partnered with Cult Wines to offer Fine Wine Investments. All of our wines are guaranteed provenance stock with traceable UID codes, stored within London City Bond. With us you will have exclusive access to top chateaux for client events, tastings and visits.

For further information please write to namratha@wine-equation.com

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