Wealthy investors around the world allocate 5 per cent of their portfolios to "passion" investments such as fine art, wine, jewellery and classic cars. Should you follow the trend?
The HAGI Top Index tracking the classic car market offers annualised returns of 12 per cent, but it also involves annualised volatility of 10.1 per cent. Bloomberg
If a Chanel handbag, vintage Ferrari roadster or rare Stradivarius violin are on your Christmas wish list, then the latest figures from Credit Suisse on the real returns of collectables may add some credibility to the cause.
In a new research paper, the investment bank's number-crunchers conclude that collectables such as fine art, antiques, classic cars, wine, jewellery and even musical instruments are an "integral part of wealth" in a world of increasingly scarce returns.
Aleks VickovichWealth editorAleks Vickovich leads the Financial Review's coverage of wealth management, specialising in the business and regulation of investment markets, financial advice and superannuation. Email Aleks at aleks.vickovich@afr.com
