LONDON.- Financial investments can appear from the outside to be an arcane business. Many people, and particularly members of the public who have never been involved in the world of financial markets, perceive it to be all about abstruse numbers, facts and figures. Perhaps they perceive it as an industry that views the real world as represented by digits on a screen or a piece of paper, and the people making investments having little or no interest in the actual subject matter other than as a means of making money.

In reality, a significant number of people who regularly make investments do so not only for financial reward, but also because they have an interest or a passion for a particular area to which they would somehow like to make an active contribution. The art world is one example of a field where people have combined their love of art with a means of making money through investments.

Getting started
The rewards, both financial and personal, from investing in art are potentially huge. Not only can financial returns be extremely competitive, there is also enormous satisfaction to be gained from the knowledge that one is a patron of the arts and a philanthropic supporter of the art world.

Getting started in this area can be challenging, so anyone looking to become an investor in the arts and create their own collection should consider the following.

• What sort of artist do you want to invest in? Contrary to popular belief, a huge amount of capital is not required to make an investment in the art world. Graduate art and works from emerging artists can be purchased for relatively small amounts. This also adds an element of excitement as one may be investing in an artist who could go on to become world famous and hugely successful.

• What are the tax considerations? Investing in art can be very tax efficient, and some governments even provide tax exemptions to encourage investment in young and rising artists. Taking that into account, while the value of art can also decrease, in the way that any investments in stocks and shares can, there are tangible financial advantages that make investing in art an attractive prospect.

• What sort of art do you like? This is perhaps the most important consideration given that, unlike almost any other kind of investment, an investor will possibly need to look at a piece of art they purchase every day. They should therefore follow their instincts and ensure what they are doing has a philanthropic angle, rather than being solely about making money. This will also be a comfort should the value of the art decrease.

Find out more
A passion for art and knowledge of the art world is a great starting point for anyone looking to make investments in this area, but they are not enough by themselves to guarantee success. Potential investors should also familiarize themselves with the world of financial investments, including the language, the culture and the processes and procedures that make up the various component systems.

With that in mind, perhaps the most useful thing that any potential investors can do is seek expert support from a specialist organization with experience in this area. An organization can help bridge the gap between the art world and the financial world. Such an organization will work with an individual to fully understand their goals and ambitions, as well as their preferences and interests, with a view to creating a tailored investment plan. Carefully created investment plans such as these will strike a balance between allowing an individual to enjoy their status as a patron of the arts, while ensuring they receive the best possible chances for significant financial success.

Passion and Reward
Making investments in this area has the potential to be hugely rewarding, and not only from a financial point of view. There is also satisfaction to be gained from knowing one is supporting this important area and helping works of art to be more widely enjoyed - not to mention the excitement that comes from the possibility of investing in a star of the future.

Finding a means of making a living through something one loves is, for many people, the key to a happy life. For people who love art but who perhaps do not have the talent or the inclination to pursue it as a full time profession, investing in the art world is another means of achieving exactly that.