EIS got introduced by the government back in the 90s with a vision to encourage investors to put money into a start-up or small businesses. When small or young organizations get financial support, they grow and create employment for people. Furthermore, these businesses contribute a lot to the UK economy. Hence, the government kept a few perks like tax rebates on this investment so that the investor stays in a win-win situation.
Whether you are a budding entrepreneur or a core investor, it is significant to understand everything about EIS shares. It will help you identify your options to generate and multiply your finances and get tax benefits. Let us dig deeper to understand what this scheme is all about and if it is fruitful for you.
About EIS Shares
Enterprise Investment Scheme, EIS is a popular way to raise money for a young organization to help it grow. If you have an idea that you feel can turn into a fruitful business, you can fetch the investors under the EIS program and turn your vision into a reality. At the same time, if you are an investor and want to put your money into a safe bet, EIS-certified start-ups are the safest option. You will know that the business is legit, and there are negligible chances of any fraud! Additionally, you will get tax benefits on this investment which is like an added perk.
Is EIS Share Complicated?
Coming to the question that many people ask, are these shares complicated? Well, the apt answer is that it is easy to manage if you have done enough research and checked all terms and conditions involved. However, lack of information or impulsiveness can make things worst for you. The factors you need to know for conveniently managing your EIS investment are:
- Verify that the company or the idea you want to put your money in complies with this scheme. Know that every start-up doesn’t qualify to be under EIS. So, verify these details if you want to make a fair decision.
- Study the idea before putting your money into it. Try to understand its demand and future scope to get an assurance that there are chances that it will excel. Moreover, you should consider putting your money into the ideas you can relate to so that you indirectly put your money into something you believe.
- Make sure you seek expert help to understand or manage your EIS shares. These experts will do the research, hunting and management job for you. Taking your requirements, they will plan your investment and help you get the maximum benefit of this scheme.
Thus, buying or managing these shares is not at all complicated. The only thing you need to do is seek expert help and do everything only after detailed research. Stay vigilant and make calculated decisions to multiply your investment amount.
