Looking at VCTs in a new light

alternative investments

VCTs are not very different to complex traditional instruments and are probably less risky than exotic instruments, so investors other than high net worth individuals should consider them

Venture capital trusts (VCTs) and traditional investments are considered to be at different ends of the risk spectrum. A common view is that VCTs are risky illiquid products which make sense for high net worth individuals whereas traditional investments are the safe places where most of us invest. But it is not so simple, and depends on the definition of traditional investments and your understanding of VCTs. If we define traditional investments as higher rate deposit accounts then they are at the opposite end of the risk spectrum from VCTs. But what if we include individual shares, maybe...