Investors are using multiple Venture Capital Trusts as a way to diversify their investments.

The trend was highlighted in data for the 2022/23 tax year compiled by Wealth Club and shared with FT Adviser.

Jack Rose, head of sales at investment manager Triple Point, puts the trend down to there being a greater choice of products with good track records than “ever before”.

The figures show 12 per cent of investors carried out seven or more VCT share transactions in 2022/23, while 17 per cent did between four and six.

Wealth Club said of all the clients that have bought VCT shares through the investment service since it was launched seven years ago, 76 per cent hold two or more VCTs.

Rose said: “There is a trend amongst VCT investors to diversify investments across multiple VCTs.

“The evidence points to investors and advisers adopting it into their processes as opposed to using them for one off pieces of planning. All of this points to a market in good health despite some of wider macro-economic headwinds that we are all facing.

“Given VCTs are expected to invest in companies under certain qualifying rules (under 7 years old, less than 250 employees amongst others), many people could be forgiven for thinking all VCTs are the same.

“However, looking under the bonnet reveals diversity in investment approaches amongst managers, which clearly can influence investment objectives and, by extension, investor outcomes.

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