Diversifying your portfolio
While the share prices of listed companies are affected by national and international factors, the trajectory of smaller companies is usually very different, and they are often able to react more quickly and flexibly to external influences. Many of our clients are enthusiastic about supporting up-and-coming businesses, recognising that they are helping to create jobs, prosperity and economic growth.
Added to this is the pension ruling that limits the amount an individual can save annually or over their lifetime into a private pension scheme before penalties are incurred. All this may mean that venture capital schemes and venture capital trusts could be a useful part of your retirement planning, especially where the tax reliefs can be deployed.
As with any investment decision, it is important to be aware of, and comfortable with, any associated risks that may come with the strategy you have adopted. Tax regulations may be amended, your circumstances may change, and of course businesses may fail.