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What Is A SEIS Scheme?

SEIS or the Seed Enterprise Investment Scheme is one of the best schemes that provides massive tax benefits. Investors in the small or the early stage of the business startup are eligible to get these benefits. It was designed to increase economic growth by promoting entrepreneurship.

Investments are easy to make through funds

Most investors these days take the help of the SEIS scheme. Being an investor, you get the opportunity to invest with various SEIS investment chances. Here mainly two different channels are used, you have to invest in any single company, or you have to opt for the SEIS funds. 

When using SEIS funds, the manager will help you to build the portfolios. It is important to understand that all these come with various advantages as well as disadvantages. However, based on personal circumstances, the best option will depend on your confidence when making investment decisions. 

If you invest using the help of the SEIS fund, you will get diversification elements. Apart from that, it also lets the investor invest using the expertise of the fund manager. When investing through funds, investors have less control over the invested money.

Investments with SEIS gives freedom and control

Since the fund managers are responsible for choosing and collating the best investments, it is best to invest using the SEIS fund as it gives less freedom on portfolio split. Due to this reason, it is always a good idea to opt for the SEIS scheme. Although at the time of direct investment, you can have direct control on the fund distribution, you still tailor the portfolio. As per your investment goals, you can tailor your portfolio. 

Make sure that you are choosing companies as well as opportunities, which reflect different circumstances as well as values. Suppose if an investor takes interest in showing support towards the technology sector along with climate change, then it is best to opt for VR-based companies and a sustainable house. 

Even though it offers better freedom as well as control of the portfolio, you must keep in mind that diversity is necessary.

Freedom in selecting various companies that matched SEIS eligibility

If you are investing with SEIS, then one thing that you have to keep in mind a few things. When choosing various SEIS companies, especially when adding a portfolio, you will get the advantage of investing in different industries. 

From retail industries to fintech, you can get various options. However, if you want your business to quality, then you have to keep a few things in mind. Some of the criteria include fewer employees, total asset value should not cross two lakh euros, etc.

Hence, these are some of the things that these schemes includes.If you want to invest with the scheme, then you must be aware of the above-mentioned points.

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