VCT risks: Are investors aware?

This is the biggest fund raise in a decade and the second highest fundraising year on record. The highest year was 2004-05, when an increase in income tax relief from 20% to 40% meant VCTs saw flows of £779m. In some cases, demand meant many offers were closed early, with only four VCTs still open at the end of the tax year-end deadline and eight of the 20 offers extended via an over-allotment facility. IW podcast: Why invest in VCT and EIS funds? The recent increase in flows is underpinned by two things: some exceptional performance and a shrinking pensions market. Looking at s...