Company shares (equities) have produced the best returns over the long term. In the past, the biggest and most mature companies, those quoted on the London stock exchange, have produced excellent returns. But this has changed fundamentally with the advent of global competition and the impact of the “credit crunch”. Investing in the UK stock market is now more risky and the likely rewards are smaller.

Where can you find capital growth? There is no simple answer but do consider investing in the shares of Early Stage Companies as part of your portfolio. These companies can grow rapidly and this growth can generate substantial capital gains for you and most qualify for EIS tax relief. This means NIL capital gains tax and NIL inheritance tax if you invest in your children’s names. The Government gives EIS tax relief because it knows that Early Stage Companies are the main creators of jobs and future wealth in the economy. Of course the risk is higher (see how our investors manage the risks involved) but there is simply no such thing as a risk free investment: even cash deposits risk losing value over time due to inflation.

(taken from Advantage Business Angels website) http://www.advantagebusinessangels.com