Concentration risk: Why it's time for VCT diversification

In the 2021/22 tax year, £1.13bn was invested in venture capital trusts (VCT), a record amount and a more than impressive show of confidence in the UK's early-stage ecosystem during a period of considerable upheaval. With investors looking to alternative asset classes like venture capital for returns, pension contributions tightening, a struggle to find portfolio income elsewhere, and a reliable source of tax relief in an otherwise uncertain tax landscape, it is possible there will be similar demand this year. There is, however, a growing need for diversification. With the average ind...