So you have decided to take the plunge and invest in wine for the first time. There are many different ways to invest: 1) you can invest a lump sum and watch rise up in value over time, possible topping it up with additional money as time goes on. 2) If you want to invest smaller amounts it is possible to start off with say just one case, or join a collective group where the profits are shared over time. 3) With a minimum investment of 100,000pounds you can join a wine investment fund, however as a private investor you may be subject to capital gains tax, one of the big advantages of wine investment; therefore it is advisable to avoid this plan.
As with any investment don’t put all your eggs in one basket, it can be a good idea to put different amounts in to different wines. Keeping your total year investment to under 50,000pounds will help to keep the levels under the capital gains threshold, as if your investment gives a high return you can simply sell and enjoy the profits. To new investors we usually recommend to put in 3k per month and build this up month on month, at the end of the year this will leave you with a very healthy investment.
Lastly be patient with your investment. You will not make massive fortunes over night. As with any investments time is needed for maturity, a minimum amount to wait would be 18 months and the charges for each investment are about 200pounds.
