venture capital trusts

deemy2004

yeh thats what I mean same as IT's ...

If the trust is successfull then it will be in demand if its not then the price will be marked lower and there will be a loss. Thats the risk people are taking, same with many other trusts and even worse for majority of Unit trusts where the spreads are just as wide as a VCT would have.

cheerfulcat

Mmmm, yes but normal ITs invest in rather larger companies, as a rule. Start ups and tiny companies are very risky - there is a tremendously high failure rate. I'm not trying to put you off, btw; I just wouldn't want anyone to go away with the idea that VCTs are a suitable investment because for most people they are not.

deemy2004

I agree, hence right at the beginning, I said aiming to invest 3% of my portfolio in this high risk / high reward tax free wrapper

If you win, you win big, if you lose, you could lose the max - 60%.

cheerfulcat

Well...best of luck!