Invest in fractionalized multimillion-dollar paintings
Invest in private assets
Investments
$15,000
The minimum investment required is $15,000, which can be used to buy one or more assets.
Investments
$10
Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.
Moderate Risk
3/5
Investing in art through Masterworks has risks, including concentration in a single artwork, limited insurance coverage, market volatility, and uncertainty in the secondary market.
Moderate Risk
3/5
Investing with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.
Moderate Liquidity
2/5
You have the option to trade shares on the platform's secondary market, but there are certain restrictions on what and how you can trade.
Minimum Liquidity
1/5
Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.
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Low Return
4.81 %
Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.
Long-term Investment
5+ years
Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.
Who can invest
International
Masterworks welcomes individuals, corporations, or entities from any location, including the United States.
Who can invest
United States
To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.
Moderate Volatility
3/5
Art market fluctuations can lead to rapid price increases and declines, posing risks for short-term investors who may lose a significant portion of their capital.
Moderate Volatility
3/5
Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.
Regulation and audits
SEC Regulated
Masterworks provides SEC-approved offering circulars for each artwork, allowing public investment. AGD Legal reviews art investments annually.
Regulation and audits
SEC Regulated
Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.
Insurance
Yes
Artworks are insured for up to $500 million by Lloyd's of London, but coverage may not fully match the artwork's value.
Insurance
No
Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.
Payouts
Dividends
Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.
Withdrawals
Investors should wait for the company to sell the painting to receive their share of the proceeds, after deducting fees.
Withdrawals
To withdraw funds from Fundrise, investors must submit a liquidation request. Liquidations are reviewed quarterly for most funds, with a waiting period for the eFund. No penalty is charged for liquidating shares from the Flagship, Income, or Innovation Funds, but eREIT and eFund shares held for less than five years may incur a penalty. Liquidations are processed on a "First in, first out" basis.
Extra Fees
Yes
Masterworks charges a 1.5% yearly fee in equity, takes a 20% cut on art sales profits, and has a one-time sourcing fee per investment.
Extra Fees
Yes
Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.
Taxes
Tax Form
US taxpayers: subject to collectible gains rate (capped at 28%), unless owning 10%+ of a single painting. Masterworks provides a free Consolidated Tax Statement. Foreign investors: no US taxes or tax withholding.
Taxes
Tax Form
Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.