There have been numerous art funds emerged in western countries as well as in Asia in recent years, through which investors interested in art have been able to diversify their investment portfolio into the art market. Even if art funds are quite popular in western countries, there is no official art fund set up in Taiwan due to various reasons, in particular, the strict laws in Taiwan and the lack of fair valuation approach or system to valuate art assets. This thesis is to study the art funds in foreign countries in terms of art fund management, strategy, structure, asset valuation, associated risks and legal environment, and further explore the feasibility of setting up art funds in Taiwan. Recommendations were also made in this study to facilitate the incubation of the infrastructure of art funds in Taiwan under a more relaxed legal environment in the future.