High Return Investments with mitigated risk
The famous cliche of the higher the risk the higher return has just been turned on its head. Yes, an investor can now enjoy the benefit of high returns whilst limiting the risk by up to 40% on their investment.
South African Revenue Services (SARS) have passed legislation that allows investors who invest into a section 12j company the right to deduct 100% of their investment from their taxable income in the year in which the investment is made. By SARS allowing the Sec 12j deduction, investors are only to 60% capital risk (assuming that the investor is paying tax at the marginal rate).
The Section 12 J opportunity is available to individuals, companies and trusts. Grovest Venture Capital Company is registered with SARS as a section 12j company.
Jeff Miller the CEO of Grovest, claims that by investing in Grovest, an investor is mitigating his risk by having exposure to a portfolio of investments. He says that should one or two investments fail, the investor would still have the potential upside from the rest of the portfolio.
Miller says that investments in a professional Venture Capital Company such as Grovest allows the investor the approved SARS tax deduction as well as having a professional management team sourcing, vetting and managing a diversified portfolio of investments.
This formula now makes VC an asset class to be reckoned with.