Even if you can't tell the difference between a Raza and a Souza, you can still invest in art. 

Edelweiss Securities will be launching India's first mutual fund that would invest solely in works of art.

Called Yatra Fund, it will have a maturity period of only four years. So when it opens for subscription, it will use the money to buy various paintings. These will be bought directly from the artists themselves.

Once the scheme matures, at the end of four years, the works of art will be sold and the profits distributed amongst the investors.

The fund will be managed by Geeta Mehra of Sakshi Art Gallery.

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What's good about this

This does offer a very unique way of diversifying one's investment.

A smart investor would invest in a variety of avenues: property, gold (bars not jewellery), fixed-return investments and shares. Investing in art is a good way to diversify one's investment portfolio.

Also, if the pieces of art are selected wisely, they could command a hefty profit when sold later.

Investing via such a fund can offer all these benefits to investors who don't have much knowledge of this field.

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What's not so good

When buying a stock, there are a lot of parameters one can look at to decide whether a share is worth that price or not.

Unlike stocks, there are no well-defined ways for price discovery in the case of works of art.

Incidentally, you will not be told on a regular basis what your investment is worth. The art holdings will be valued by independent valuators occasionally.

Secondly, buying, selling, storing and preserving works of art includes substantial transaction costs, maintenance costs and insurance. These expenses could impact returns substantially.

Moreover, the entry rate is high. In the first round of raising money, the minimum investment will be Rs 10 lakh (Rs 1 million).

Six to eight months down the road, the fund will once again be open to the public to raise money. This time, the minimum investment may be lower. 

So should you opt for this fund?

Only if you have substantial investments in other avenues and want to add some flavour to your overall portfolio.