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Key Risks

Estimated reading time: 2 mins

Due to the potential for losses, this investment is considered to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    • Investments made by the Calculus EIS Fund will be in shares in early-stage businesses. Investors in these shares often lose 100% of the money they invested, as many early-stage businesses fail.
  2. You are unlikely to be protected if something goes wrong
    • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker.
    • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection.
  3. You won’t get your money back quickly
    • Even if the businesses the Fund invests your money in are successful, it may take several years to get your money back.
    • The most likely way to get your money back is if the businesses invested in by the Fund are bought by another business or list their shares on an exchange such as the London Stock Exchange. These events are not common.
    • Early-stage businesses very rarely pay you back through dividends. You should not expect to get your money back this way.
  4. Don’t put all your eggs in one basket
    • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    • A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Find out more
  5. The value of your investment can be reduced
    • The percentage of each investee company that the Fund owns will decrease if the business issues more shares. This could mean that the value of your investment in each investee company reduces, depending on how much the business grows. Most early-stage businesses issue multiple rounds of shares.
    • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
  6. Tax advantages not guaranteed
    • Whilst it is the Fund’s intention to invest in companies qualifying under EIS legislation, Calculus cannot guarantee that all investments will qualify for EIS relief (or IHT relief) or, indeed, if they do initially, that they will continue to do so throughout the life of the investment. The tax advantages of investing through the Fund are therefore not guaranteed. The tax treatment depends on the individuals circumstances of each investor and may be subject to change in the future.

If you are interested in learning more about how to protect yourself, visit the FCA’s website.

Important Information

The investments referred to in this website are not suitable for all investors. Calculus Capital Limited is not able to give advice to prospective investors about the suitability of the investments. Prospective investors are recommended to seek specialist tax and financial advice before investing in the Calculus EIS Fund or Calculus VCT.

An investment into the Calculus EIS Fund of Calculus VCT may only be made on the basis of reading in full the information set out in the relevant Information Memorandum or prospectus.

When investing, your capital is at risk. The value of shares and income from them may go down as well as up and despite the tax relief you may not recover the amount originally invested. An investment in smaller and unquoted companies carries a higher risk than many other forms of investment. Shares in unquoted companies are not readily marketable. You should not invest in an EIS or VCT unless you can afford to lose some or all of your capital.

An EIS or VCT investment is only appropriate for investors with a medium to long term investment horizon; the timing and extent of realisation cannot be predicted and may extend beyond five years. It is not possible to allow a partial withdrawal of your investment. You may request a total withdrawal, but since many investments made will be in unquoted companies, this may not be possible. Withdrawal within three years for the EIS and five years for the VCT would lead to repayment of any tax reliefs received.

The tax benefits available depend upon your individual circumstances and these benefits may change dependent upon future legislation.

I have read and understood this important information

Important Information

The investments referred to in this website are not suitable for all investors. Calculus Capital Limited is not able to give advice to prospective investors about the suitability of the investments. Prospective investors are recommended to seek specialist tax and financial advice before investing in the Calculus EIS Fund or Calculus VCT.

An investment into the Calculus EIS Fund of Calculus VCT may only be made on the basis of reading in full the information set out in the relevant Information Memorandum or prospectus.

When investing, your capital is at risk. The value of shares and income from them may go down as well as up and despite the tax relief you may not recover the amount originally invested. An investment in smaller and unquoted companies carries a higher risk than many other forms of investment. Shares in unquoted companies are not readily marketable. You should not invest in an EIS or VCT unless you can afford to lose some or all of your capital.

An EIS or VCT investment is only appropriate for investors with a medium to long term investment horizon; the timing and extent of realisation cannot be predicted and may extend beyond five years. It is not possible to allow a partial withdrawal of your investment. You may request a total withdrawal, but since many investments made will be in unquoted companies, this may not be possible. Withdrawal within three years for the EIS and five years for the VCT would lead to repayment of any tax reliefs received.

The tax benefits available depend upon your individual circumstances and these benefits may change dependent upon future legislation.

I have read and understood this important information