Very nature riskier investments.
Alternative Investments are by their very nature riskier investments. Investors are often tempted by higher returns without considering the potential higher risks of such investments and the possible loss of their capital.
It is important that clients carry out due diligence before investing. Equally, on going due diligence is recommended to ensure that the firm issuing an Alternative Investment maintains their investment mandate.
Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) give various incentives to investors. Schemes approved by HMRC tend to offer more protection for retail investors but are ultimately not guaranteed.
Many of the Alternative Investment products and schemes marketed are not covered by the Financial Conduct Authority (FCA) or the Financial Ombudsman Service (FOS) protection umbrella in the UK. Elsewhere worldwide the protection, if any, would be subject to local jurisdiction law.
We suggest that you tread very carefully when purchasing Alternative Investments.
‘Caveat Emptor’ buyer beware!