How do you take your risk? – EIS?

 March 2018

A look at Enterprise Investment Schemes

I have recently been involved with some Enterprise Investment Scheme (EIS) funds, which is a departure from my usual duties with IFA firms. That is one of the joys of working freelance. But it has given me the opportunity to get under the bonnet of EIS funds and also to re-assess the attitudes of IFAs towards EIS funds.

Traditionally. IFAs have considered EIS funds as funds that involve the tax-efficiency tail wagging the investment dog. EIS funds have been considered to be too high risk for nearly all clients and even with the attraction of the tax relief on offer, the risk of loss was still too high to consider seriously for their clients.