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venture capital trusts

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Comments

  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    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
    cheerfulcat Posts: 3,412 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    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
    deemy2004 Posts: 6,201 Forumite
    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
    cheerfulcat Posts: 3,412 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Well...best of luck!
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