Despite a slower year than the past two for venture capital trusts, sales are still beating their 10-year average.
Wealth Club found investment in VCTs hit £144.5mn in the four weeks to March 25, up 18.8 per cent on the same period last year.
However, this uptick follows a slower tax year so far after two boom years, with flows down 19.8 per cent.
Total flows this tax year stand at £720mn, compared with £910mn last year at the same time.
Alex Davies, founder of the investment service, said: “Sales are still comfortably above the average over the last 10 years, and are picking up as we approach the tax year end.”
Some popular VCT’s including Northern, Foresight, Octopus Apollo, British Smaller Companies and Albion VCTs have already filled, while others are approaching capacity in the run up to their closing dates early in April.
Davies added: “Those planning on taking advantage of a quieter tax year and leaving it to the last minute should beware.
“Many VCTs actually close before the tax year end to give them time to get all the paperwork in order. Moreover as the deadlines get closer, many popular VCTs will sell out.”
VCTs give investors access to tax breaks with up to 30 per cent back in income tax relief up front and tax-free dividends.
Last month, data from the Association of Investment Companies showed the average VCT was down 5 per cent in 2023.
However, it said over the longer term VCTs have performed better, with total returns of 22 per cent and 85 per cent over the past five and 10 years respectively.
tara.o'connor@ft.com
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