7
KEY FINDINGS
do so for the tax benefits,
whereas investors were
more focused on the level
of returns available (36%)
with the tax benefits being
less important (only 18%)
The
TREASURY
has
indicated that it is
unhappy with some
of the lower-risk,
‘exit-focused’
EIS investments
The shape of
the EIS market has
changed dramatically
over time
ENERGY
is now the largest
industry sector with
28% OF THE
MARKET
Investing in smaller
companies is inherently
more risky than investing
in established listed
companies, but the tax
advantages of the EIS tilt the
QUALIFYING COMPANIES
may be larger and better
established than many
people think
EIS
investments
allow
TAX
to be reduced
considerably
Research indicates that
systematically diversifying
across a portfolio of EIS
qualifying companies is the
most sensible approach to
reducing risk.
Investing in EIS
funds is still
somewhat
opaque
, with
accurate
investment
PERFORMANCE
DATA HARD TO
COME BY
RISK/REWARD BALANCE
back
in
favour
of the
investor
*potentially **the administration and management costs of a large portfolio could be significant
10
30
A PORTFOLIO OF
TEN WOULD BE
THE MINIMUM
A PORTFOLIO OF
THIRTY WOULD
BE OPTIMAL**
CAPITAL GAINS
INCOME
INHERITANCE*
qualify for EIS
AIM listed firms
can
91%OF
ADVISERS
WHORECOMMENDEIS
INVESTMENTS
Driven by
the
need for
diversification,
tax benefits
and strong
returns, the
EIS market has
seen
STELLAR
GROWTH
over
the last
few years
