The Wine Investment Fund, a closed-ended trust that invests only in Bordeaux wines, announced annualised returns of 10.04pc over the past five years compared to the blue chip index's paltry 0.03pc. The Fund, holds an average of four tranches a year, locking investors in for five years has managed average returns of 14.7pc since its launch in 2003.
Investment grade wine had almost two years of uninterrupted growth from the beginning of 2009 to that of 2011. Since then the price has fallen, with wine losing 15pc over the course of 2011.
Andrew della Casa, director said The Wine Investment Fund said: "Fine wine prices fell by 15pc in 2011 as the market corrected from the sharp rise of 76pc since the end of 2008. We predicted in January that the Liv-ex 100, the main wine index, would finish 2012 10pc above its 2011 year-end level.
"So far this year it has risen 3pc. Pointing to wine having been oversold, we believe that now may be the most advantageous time to buy into the market since January 2009."
Fine, investment-grade wine, is considered to be only the top 50 to 100 traded wines, although some go further and specify that only those from chateaus in the Bordeaux region qualify.
Not every year produces an investment-grade wine either – only three or four years out of 10 are usually a good vintage.