Investing in the art world is now just a click away

Investing in fine art - like this multi-million-dollar Monet - isn't just for the ultra-wealthy anymore.

(SOUNDBITE) (English) MASTERWORKS GALLERY, CEO AND FOUNDER, SCOTT LYNN, SAYING:

"This is an important $7 million painting. That we're offering to investors as of recently."

That's Scott Lynn. He's CEO and founder of Masterworks, a two-year-old startup offering investors the chance to buy a piece of an expensive work of art.

Think of it as buying into a mutual fund for art.

This is how it works.

Masterworks buys the artwork, then sells shares of it on its online platform to investors who decide how many shares they want. Shares cost $20 apiece, but the minimum investment is $1,000.

Investors may be co-owners but that doesn't mean they get to hang the painting in their homes.

Masterwork keeps the artwork for display, along with other paintings, in this recently opened art gallery in New York City.

Four are currently shown there, the others are held in storage.

In theory, when the painting is sold, hopefully for a profit, investors get a payout - and the company takes a cut.

(SOUNDBITE) (English) MASTERWORKS GALLERY, CEO AND FOUNDER, SCOTT LYNN, SAYING:

"This is an asset¬ class that we think is very interesting. It's $1.7 trillion in total value...But, historically, there hasn't been a good way for anyone to invest in it."

Masterworks says it tries to hold a painting for 3-5 years so it can appreciate in value.

But that lack of liquidity could be a problem for some, since the investment is tied up until Masterworks chooses to sell the painting.

Art prices have been breaking records lately...

Last year, Sotheby's auctioned one of the paintings in Monet's Haystacks series for $110 million, the most ever for an Impressionist painting.

But a downturn could easily change that - since the art market rises and falls in line with the overall economy.

Getting in on a masterpiece may seem like a good idea now, but Jeff Tomasulo, CEO of Vespula Capital, says as with any investment , investors should proceed cautiously.

(SOUNDBITE) (English) VESPULA CAPITAL FOUNDER AND CEO, JEFF TOMASULO, SAYING:

"You do have that appreciation, but you also have the risk of losing all your money, right? If you buy this painting for a million dollars and then, ten years later, they want to sell, and they only sell it for $740 (thousand), you can still lose money on it. So, I think investors have to be very conscious of that."

Investing in a piece of art history also comes with other costs.

Masterworks charges a management fee of 1.5 percent a year. Plus 20 percent of any profit made when the artwork is sold.