The Alternative Investment Market (AIM) can be a fertile hunting ground for investors, but it can also be a minefield. Small, unproven companies are inherently riskier than larger, established companies. As such, investors seek much higher upside on AIM companies.
Whilst AIM shares are not for the fainthearted, they can provide diversification and enhance portfolio performance.
AIM has built a reputation as an attractive marketplace for companies and investors, and a highly tax-efficient one. Qualifying shares listed on AIM are exempt from inheritance tax once they have been held for two years and have been allowed in ISAs since 2013.