Venturing into long-term growth

Article Abstract:

UK venture capital trusts can perform well over the long term. 3i is the most diversified trust and provides steady growth with a low risk. Other trusts are involved in larger deals, such as Kleinwort Development Fund. 3i's risk level is not especially low for the sector, measured in terms of volatility, and investors can find other low-risk trusts with a better performance. The performance of these trusts could be affected by slower economic growth which would reduce the number of deals, and the abilities of the fund manager are also important.

Investors, not elsewhere classified

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Tax-free pioneers should be patient

Article Abstract:

UK venture capital trusts (VCTs) with tax concessions are being launched in Sep 1995. The trusts are only permitted to invest in small companies and involve high risk levels. Income tax relief is availbale for investors of 20% of money invested. Investors should not be over-hasty in investing in these trusts. There are good reasons for waiting until a number of new trusts are on offer in order to benefit from a wider selection, though the best deals may be sold first.

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Venture capital trusts

Article Abstract:

UK venture capital trusts (VCTs) have aroused high expectations. The UK Treasury has estimated that 2.5 billion pounds sterling could be raised through VCTs but this appears over-optimistic according to data from the British Venture Capital Association. Tax relief is available to investors subscribing at launches of VCTs, both on incomes tax and deferral of capital gains tax. VCTs are a collective investment which spreads the risk.

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