How do VCTs differ from normal investment trusts?
Unlike with a normal investment trust, a VCT manager not only invests in a company but also advises it. This could be knowledge of a particular sector or hands on experience of actually running a company. By working closely together the chosen firms should be able to expand more quickly and potentially; increasing their value.
VCTs are sophisticated, long-term investments only suitable for inclusion in significant portfolios. They are often difficult to access the capital invested in the short term and they often carry higher risks than many other forms of investments.More information about VCTs