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More and more investors these days consider to generate their income by investing in their hobbies. According to the research conducted by Lloyds Private Banking, some of investors are ready to go as far as for spending over £50,000 on a single hobby investment.
According to the input of the 500 investors interviewed, one in six of them confessed to holding collectable investments in their portfolios.
Those ones who had around £50,000 invested in their object of adoration were willingly parting with hard earned cash spending around £13,500 on a single investment.
The research revealed that 1 in 10 of those interviewed would give away over £50,000 on a personal item.
While jewellery turned out to be the most widespread collectable item, classic cars took the first place in terms of expensiveness with an average of £34,500 per investment.
One in six of investors confessed to holding collectable investments in their portfolios.
The third place belongs to antiques at £32,500 and whisky at £27,700. Racehorses are lagging behind with an average expenditure of £ 15,000
The chief investment officer at Lloyds Private Banking Markus Stadlmann commented on the investors’ rage saying that “work and play do not need to be mutually exclusive when it comes to investing”
He mentioned that when adding tangible assets, it is possible to generate money from passion. Painting, for instance, will never lose its value and will not get affected by inflation.
“Over the long-term, these types of assets do not closely correlate with more traditional equity and bond markets, and therefore offer diversification opportunities.”
The chief investment officer said that one can make good money and even build a lucrative business by investing in hobbies.
The research suggests that 1 in 8 investors experienced a 100% return on a ‘passion’ investment.
However, Mr Stadlmann also mentioned that it is vital to keep in mind that all those kinds of investment usually operate in private markets, and it would be a smart move to firstly search up the expenses of storage, purchasing, restoration and insurance.