Invest in fractionalized multimillion-dollar paintings
Invest in a real estate fund
Investments
$15,000
The minimum investment required is $15,000, which can be used to buy one or more assets.
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
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 in the Roots Investment Community Fund carries risks including market fluctuations, economic changes, property-specific issues, and potential for financial loss.
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
Investors in the Roots Investment Community Fund can cash out after the first year, with liquidity options available quarterly for added flexibility.
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High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
Short-term Investment
1 year
The recommended investment period for the Roots Investment Community Fund is at least a year, but liquidity is offered quarterly for investors needing flexibility.
Who can invest
International
Masterworks welcomes individuals, corporations, or entities from any location, including the United States.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and 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 within the Roots Investment Community Fund may experience volatility due to economic conditions, interest rate changes, and local market dynamics. However, real estate typically shows less volatility than stocks, with rental income offering some stability.
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
The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.
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
Yes
The Roots Investment Community Fund likely holds insurance to protect its assets, including property, liability, and loss of income insurance, safeguarding against damage, claims, and lost rental income.
Payouts
Dividends
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
Withdrawals
Investors should wait for the company to sell the painting to receive their share of the proceeds, after deducting fees.
Withdrawals
Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
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
The platform charges a $5 transaction fee for the first investment and $3 for subsequent investments. A 6% fee applies if liquidating before one year; no fee after one year.
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
Annual Statement
As a REIT, the Roots Investment Community Fund passing profits to shareholders who can deduct up to 20% of dividend income as capital gains, with no cap or wage restrictions.