Thinking of investing but you’re not sure whether it’s the right option for you? There are a lot of different types of investments you can make, and venture capital trusts are just one of them.

Here, you’ll discover the top three benefits of investing in venture capital trusts to help you decide whether it’s right for you.

1. Helping smaller businesses succeed

One of the main goals of venture capital trusts is to help smaller, unestablished businesses to grow. They are considered high risk due to the fact that you’re investing in an unknown company. However, on the flip side of this, you get to be a part of helping smaller businesses to succeed. 

It can be difficult for start-ups to get the funding they need. So, venture capital trusts are great for investing into the economy, helping these businesses get the foot in the door they need. This can not only be potentially lucrative for investors, but it can also be rewarding to be part of the success of a start-up business. 

2. Potentially high gains

Did you know venture capital trusts can produce potentially high gains? While it’s true the risks are greater than investing in established businesses, this means that the returns are also higher if the business does succeed. 

If you’re looking for an investment opportunity that’s going to provide lucrative returns, this is definitely the type you should consider. You can also lower the risk a little by seeking advice from a professional company. They will be able to advise you on where to invest.

3. Attractive tax relief

Another benefit of investing in venture capital trusts, is the attractive tax relief you can claim. Did you know these investments allow you to claim back up to 30% in tax relief each year? This applies to investments up to a total of £200,000. The only stipulation here is that you’ll need to have the investment account for a minimum of five years. 

These tax relief benefits are provided as compensation for the fact that these investments are higher risk. So, it is important to weigh up the risks as well as the potential benefits before deciding whether it is worth making an investment.

As with any type of investment, it’s crucial you do as much research as you can before deciding whether venture capital trusts are right for you. If you’re looking for high returns and great tax relief incentives, it could be the right option for you. However, you also need to be prepared to accept the higher risks involved. If you are thinking of getting into these investments, it’s worth seeking advice from a specialist investment company.