Opportunities for using investments in wine for portfolio diversification: Foreign and Russian practices

Author:

VARAKIN Matvei Yu.1

Affiliation:

1. Moscow State Institute of International Relations (University) of Ministry of Foreign Affairs of Russian Federation (MGIMO University)

Abstract

Subject. This article discusses the opportunities for using investments in wine for the purpose of portfolio diversification, taking into account Russian and foreign practices. Objectives. The article aims to assess the possibilities of using collectible wine to diversify the investment portfolio. Methods. For the study, I used the mean-variance analysis, covariance and correlation analyses, modeling, and the statistical method. Results. The article presents the results of the assessment of the investment characteristics of collectible wine as a class of alternative assets. It describes the main trends in the global wine investment market and identifies the prospects and problems of the development of wine investments in Russia. Conclusions and Relevance. The article concludes that investments in collectible wine are more profitable and less risky than traditional investment instruments, and they also have a weak correlation with classic financial market assets, which makes investing in wine an effective way to diversify a portfolio. The results of the study can be used by both private and institutional investors interested in diversifying their asset portfolio using alternative investments.

Publisher

Publishing House Finance and Credit

Subject

Cell Biology,Developmental Biology,Embryology,Anatomy

Reference15 articles.

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