How To Find The Right Enterprise Investment Scheme
by Startacus Admin
Thinking about investing in an EIS? Here's an overview of a few of the things that you should consider before doing just that.
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Investing is a favoured pastime for individuals reading this and beyond. What was once something that was prevalent among those with the capital to their name has extended to provide opportunities to a wider population. Finding the right investment opportunity, however, can be a challenge, regardless of how much money you have or what you intend to invest.
An Enterprise Investment Scheme is one such investment opportunity that can be appealing to new investors and those more experienced. Read on to discover more about this as an investment opportunity and how you would go about investing.
What Is the Enterprise Investment Scheme?
Before you can find the right Enterprise Investment Scheme (EIS) opportunity, you need to better understand what one is. The EIS is a scheme that enables businesses to raise money to help them grow. The process works by offering tax reliefs to investors who inject funds into the company, but there are stringent rules in which businesses must follow to ensure the tax reliefs can be claimed.
Understandably, this is an investment opportunity that attracts plenty of individuals each year, but how do you go about investing? This takes us to the following section.
Research and Consult an Investment Manager
Some people interested in investing in an EIS might think it entails a quick Google search, but you want to be a bit more thorough in your efforts. While nothing stops you from searching for companies that are part of an EIS, consulting an investment management business, like Oxford Capital, ensures that you will be investing in early-stage businesses which have been backed by an experienced investment manager.
At the same time, you could network with other like-minded individuals and ask them about their experiences in investing in an EIS. This will help you better understand the experience from the point of view of an investor.
Consider The Risks
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There are risks associated with any investment opportunity out there. While we have every faith that investors, both novice and experienced, would understand what risks to expect, this is still something we felt was worth mentioning in this piece.
Particularly when finding the right EIS to invest in, you want to assess what risks are associated. Concerning the tax reliefs that are associated with an EIS investment, it is worth understanding that tax rules can change and could do so in the future. This would undoubtedly have an impact on your ability to claim tax relief and also impact your investment too.
By researching the risks yourself and talking them through with the investment manager you have opted to work with, you can rest assured you are taking all the necessary precautions to protect yourself and your investment in the future. Finding the right EIS might seem like a bit of a challenge initially, but by taking your time and being patient in your efforts, you can address the risk appropriately.
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Published on: 28th January 2022
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