There are numerous facets that one should take into consideration when looking to invest in a movie. Most of the time, outside investors commonly will invest in indie movies. This is because the major motion pictures that bigwig production companies sign off on are generally already vested from the company and outside investors, or well known – and generally well off – executive producers. While it is possible to invest in a major motion picture, a lot of investors find that indie movies are more lucrative because they require fewer dollars up front, and offer a more satiable return on investment over the big name production studios. If you have ever considered the propensity of financial return that you could enjoy when you invest in a movie, the following tips can serve to help get you started.

Five Simple Tips on How to Invest in a Movie

1. Ponder why you want to invest in a movie. Are you sure you want to do this? You want to keep in mind that there is risk involved, and there is no guaranteed return on investment. But a substantiated risk can many times pay off in the form of big returns on ticket sales and on merchandising as well as on DVD sales.
2. Indie movies are considered to be a non correlated asset class investment. In fact, film and film finance have consistently outperformed other types of investments like hedge funds and retirement funds, spurring a higher return on investment overall.
3. Increasing portfolio diversification. If you are managing a large investment portfolio, when you invest in a movie, you can expand and diversify that portfolio and make it more attractive as well as increase its returns.
4. It can be a winning lotto ticket. Over the past ten years, some films have seen resounding success from minimal upfront investment. For example, “Blair Witch Project” cost $60,000 to produce, but netted millions at the box office in returns.
5. Get ready for the negativity. A lot of people are naysayers with regard to those who want to invest in a movie. Even if a movie is not your typical brick and mortar investment, look to advisors that are familiar with film financing to get the real answers.
   
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