Invest a lump sum into a portfolio of wines and watch it grow,
with the option of reinvesting in additional cases as time goes on.
A management service will handle the investment from start to
finish, providing updates and relevant news. Management firms will
usually cover the cost of bonded storage as part of their services.
2) Privately Managed Wine Portfolio
Experienced wine collectors sometimes chose to manage their own
portfolios, making the decisions on which wines to buy, when to buy,
when to sell as well as sourcing a buyer upon exit. In most
instances, collectors will have to make arrangements for bonded
storage and cover the costs themselves.
3) Investment Fund
Wine investment funds within the UK will be operated and managed
by a financial institution and regulated by the FSA. Investing in a
fund will generally render lower yields, as the management fees are
higher than other forms of wine investment and any returns will be
subject to Capital Gains Tax at 28%. Wine funds are also fixed term,
with a minimum investment level (usually £10,000) and redemption
charges for any possible early liquidation.
4) Cellar Plan / Monthly Instalment Plan
These offer investors with limited initial capital the
opportunity to start investing a monthly sum, purchasing low capital
wines monthly and accumulating a portfolio over time. One flaw of
these plans is the limited number of investment wines that can be
selected and the lack of 1st Growth / Burgundy opportunities.