A viable alternative to pension plans

vcts

The risks may be that much higher and illiquidity may make the selling on of shares tougher but the long-term potential of venture capital trusts makes them an attractive alternative to personal pensions

Venture capital trusts (VCTs) are generally regarded as high-risk investments, although, as always, the level of risk varies between funds. There are strict conditions for setting up a VCT and the Inland Revenue has to formally approve every scheme. Each VCT has its own stated investment objective and is run by a specialist, professional and active fund manager. The main reason for the introduction of VCTS was to encourage individuals to invest in higher risk market sectors and to provide capital to companies typically requiring funds of £1m-£5m. Investors usually used this vehicle whe...