FROM FUNDS TO VENTURE CAPITAL TRUSTS, THE KEY WAYS TO BUY TECH

BUY individual shares. Single companies are risky and volatile but you can do well if they prosper – or lose the lot if they go bust. Once you have done your research, make a purchase through a broker such as Hargreaves Lansdown, AJ Bell, Halifax and Interactive Investor. Each transaction will incur a dealing charge plus 0.5 per cent stamp duty. PURCHASE a fund. Managers of funds use their expertise to pick a range of companies they believe will perform the best in the specialist sectors they are focused on. By investing in scores of shares this helps to spread risk if certain choices prove unprofitable. Funds can also be bought through brokers. CONSIDER investment trusts. These are similar to funds in that they also invest in the shares of companies that the managers believe have potential. Unlike funds, they are stock market listed and are traded like any other share. They have more flexibility to invest in unlisted firms, many of which inhabit the early stage transformative technology world. LOOK at venture capital trusts. These offer wealthy investors the chance to invest in innovative small British firms in return for generous income tax breaks if held for five years. But they are high risk. Purchase direct from the VCT manager or through a broker such as Bestinvest or Hargreaves Lansdown. TO REDUCE risk it is recommended no investor has more than 5 per cent of their total portfolio in transformative technology investments.