THE MONEY MAKING EXPERT

UK Micro Cap, Marlborough UK Micro Cap Growth and Amati UK Smaller Companies. Respective three year returns are 42 per cent, 65 per cent and 47 per cent.

AIM-focused Venture Capital Trusts are another way to gain access to AIM-traded companies, and can offer investors attractive tax breaks.

Investors who buy new shares in VCTs enjoy 30 per cent up-front tax relief, provided they hold the shares for at least five years. Any dividends and capital gains are also tax-free.

Hollands says: ‘The Government has excluded certain types of business from being eligible for VCT investment. So AIM VCTs only have access to part of the AIM market, not all of the companies on it.’ That doesn’t stop these trusts being popular. Recently, Octopus AIM VCT raised £40million of new money from investors in just 24 days.

However you choose to invest in the AIM market, it is important to understand the risks when investing in lighter regulated companies. You must ensure your AIM investments match your tolerance for risk.