Fractional ownership emerged over the last few years and makes it easy for multiple parties to own shares in both physical (such as boats, real estate, or trading cards) or digital (such as NFTs) assets. The cost, and therefore the risk, is shared among many stakeholders, and the value of their proportionate shares rise or fall like stocks. Fractional ownership gives you an ownership interest in the asset, but it has some limitations as you do not have direct custody or control over the asset. Read on to learn if fractional ownership is an investing strategy that you should add to your portfolio:
1. You enjoy the “thrill of the trade.”
Fractional ownership is most similar to the stock market: shareholders hope that somebody will essentially make a higher offer so they can cash in on the returns.
2. You don’t need to physically own or display something to enjoy it.
Unlike traditional collecting, you don’t have custodial rights to the object. However, the collectible is vaulted in a secure, climate-controlled condition—and you can invest as much (or as little) as you like!
3. For many reasons, you’re not ready to make the full purchase.
Fractional ownership provides unmatched access to items for people who may not be able to afford the object in its entirety.
4. You admire collections, but it’s not necessarily your passion or personal focus.
Bragging rights are a thing, too. How cool would it be to say you own 1/10th (or 1/100th) of some of the rarest sports cards, jerseys, paintings, or NFTs in the world?
If any of the above sound like you, fractional ownership may be the place to start. But it’s also just the beginning; here at MAGPIE, we’re developing the future of alternative assets, including the ability to buy, sell and manage NFTs with a credit card, as well as the world’s first interest earning collectibles vault. Join our community for early access to our first launch!
Special thanks and credit to Howard Epstein, a collectibles expert and financial advisor.
