There is no official “minimum deposit” requirement with Masterworks. However, if you want to skip the waiting list (which is a couple thousand investors long at this point), you will want to look at depositing a minimum of $5,000 to $10,000. This amount can be an initial deposit or something that you work your way up to over a few months after testing the waters with a smaller initial deposit of around $1,000.
When it comes to investing in art, I would recommend that you look to devote approximately 10% of your overall net worth. For instance, if your combined portfolio consists of stocks, term deposits, cash, and other assets totaling $100,000, it would be advisable to invest approximately $10,000 in Masterworks.
However, if you are seeking a greater diversification away from more conventional assets, it might be more suitable to consider allocating around 15% to 20% of your net worth. Similarly, if you have a high income but relatively low wealth, you may also find it advantageous to allocate a larger portion of your net worth to Masterworks, to ensure your membership is above the minimum threshold (and considering your ability to quickly recoup the invested funds).
If you are looking to deposit less than $2,000 all up, you will likely be placed on the waiting list. So, while there is no “minimum deposit” per se, a larger investment amount will help you skip the line and become a Masterworks member much faster than you might otherwise.
If you have any further questions about investing in art funds, like that offered by Masterworks or Yieldstreet, please reach out to mark@easelinvesting.com, and we would be happy to set you on the right path. Additionally, you can learn more about Art ETFs here.
