When choosing a VCT, potential investors can attempt to differentiate between the funds on offer by looking at their strategy, track record, deal flow and costs.
Potential venture capital trust investors cannot claim that they have not got a good choice of funds. Over 40 VCTs seeking more than a billion pounds are competing for what we think will be between £400m and £500m of demand. The problem for investors and their financial advisers is differentiating between schemes. And some of the new entrants are offering bells and whistles aimed at appealing to investors. However, in our view these only create confusion and doubt about VCTs. We attempt to rank open VCTs against a number of important criteria, with different weightings attached to each of...
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