Mr Kaye, director of Puma VCTs, said: “We have seen the number of investors using VCTs increase but the average size of the investment is lower than some might think – it is £15,000.

“It is clear it is not just repeat investors subscribing to the VCT, but also new investors who are being attracted by the fixed rate of interest and tax efficiency of the product.”

He said that because the VCT has proved so popular the subscription period has been extended by the managers from 5 April to 3 May, or until the maximum of 30m shares have been issued.

VCT 9, which opened in 2012, aims to protect capital and pay tax-free dividends of up to 6p a year from the second year until it is wound up in year six.

As a limited life VCT, it is designed to offer lower risk and returns than others in the VCT sector. It is run by Puma Investments, part of the Shore Capital Group.

Adviser view:

Adrian Lowcock, senior investment manager for Hargreaves Lansdown, said: “This is one of the better VCTs in a sector which, I think it’s fair to say, has been shrinking, thanks to regulatory changes. It continues to attract the lion’s share of funding.

“With limited life VCTs you’re not expecting an exceptional return. A large chunk of it is about the tax relief with a bit of return on top. That means that although this is still a high-risk form of investing, Puma 9 is at the lower-risk end of the spectrum.”

See full article here on the FT Advisor website