After burning fingers in stock market and real estate investment, HNI investors have another asset class to diversify their investment.
ICICI Bank is offering its private banking customers option of investing in Cinema Capital Venture Fund that is a SEBI approved fund which will invest in Indian media and entertainment industry.
The fund will be a structured product without capital guarantee and minimum investment would be Rs.10 lacs and a lock-in period of 5 years.
The fund may attract good response as it is a totally new investment product which gives more leeway for investors who have already allocated their investment into equity, FD, insurance, gold or even other unique products (like Crayon Capital Art Fund).
The fund would also be beneficial for Indian film industry as it gives money to professionals to bring out the best product.
The target return for the cinema fund has been projected at 35% which may seem quite reasonable seeing the performance of Indian films over the years.
Some interesting points to note in the product brochure of the fund is that many films perceived to be flops have delivered profits and many big banner films recover their cost while they are still under production. Also, IDBI Bank which was among the first to venture into film financing has still not got a single NPA till date.