How can EIS investors manage risk?

Changes in legislation and increased focus by HM Revenue & Customs on types of investment within the enterprise investment scheme (EIS) sector have exposed a big dichotomy in the market - and it comes down to a question of risk, writes Kuber Ventures chief executive Dermot Campbell.

Put simply, investors have historically been steered towards lower returns because advisers see little upside in letting clients assume the sort of risks they may wish to take. This could have been due to lack of choice in the market and the administrative burden of taking a portfolio approach to EIS investing commonplace with mutual funds. But our experience is that there may be more to this than those reasons. The good news is that we see a solution to this disconnect and it lies in the full-scale disruption of what has been an overly cosy EIS provider market. More on that in a m...