Who is it for?

VCTs are only really a consideration for investors with significant investment portfolios who can afford to take a long-term view and are comfortable with the risks of investing in smaller companies. VCTs are therefore not suitable for all investors. We feel that at most they should account for 5 to 10% of your equity portfolio but, obviously if you can afford both, and are prepared to take more risk, this percentage can be increased. They are designed to pay out any profits only when the companies in which they invest are sold, and so you must take a long-term view (5-10 years).