|Investors in wine would have enjoyed a better return than those investing in Western stock markets over the last seven years, a study from London-based specialist Wine Asset Managers has shown.
Data from the London-based company shows that the average annualised return on an investment in fine wines would have stood at 16 per cent.
The company calculates that, after costs, this would equate to an investment of £50,000 in wine having grown to £120,000 by the end of the seven-year period. By way of comparison, the same level of investment in a basket of FTSE stocks would now be worth £61,000, City AM reports.
Miles Davis, partner at Wine Asset Managers, said: “In the current economic climate, savvy investors are looking for alternative [instruments].”
Wine is likely to continue to return around 15 per cent this year, he added, with demand being driven in part by the emerging economies of China and India as well as Russia.