Why Investing In Movies Is Like Investing In A Hedge Fund

As a Bollywood Producer, with movies such as Buddha in a Traffic Jam, The Tashkent Files etc, I certainly wish to voice my opinion on why you should invest in films. You see, I have a family background in the real estate industry and let me tell you that I’ve seen changes taking place over a long term period, such that at times I couldn’t make a difference between past and present. With films, the matter is much more different.

As an experienced film maker, I won’t want you to treat the film industry as some ultimate and the only destination because this industry requires patient nerves and an understanding of what can work and what cannot. So I know what kind of film projects to pour money into and when to make money out of it. This requires experience which you can trust in my case.

On the other hand, with you as an investor with me, films can be a good source of revenue, a backup plan whenever things go bad. As a guide, I can give you a clear and succinct idea of what to look out for in any projects we come across. And this is important for any investor who needs to diversify his portfolio. Films usually have a return cycle lasting anywhere from 12 to 24 months depending on the stage project is in and the scale. Even more, with the rise of OTT platforms and other digital platforms, it is possible to earn more revenues via provision of broadcasting rights over all territory, covering the globe.

With the rise of online movie demand, investors see a great possibility which was once restricted to limited class of investors in the early 90s. Back then the money transactions were usually away from investor and govt purview which meant a great risk in terms of legal and financial hassles. Only select few were privy to details as also the fact that the Mumbai underworld was notorious for making this industry their prime investment model.

This has now changed considerably since the time the Govt of India has accorded Industry recognition to Indian Film Industry. Which means everything now is regulated and transparent. This is good news for new investors who wish to diverse their funds.

With new digital platforms, revenue streams have become extremely diversified. Earlier, when earnings were restricted to movie ticket sales, today OTT sales covers up a good amount of investment, which has made films less risky in terms of investments. I would personally recommend investors to try and understand what kind of films they want to invest into. A good, basic homework is essential in this matter.