Are EIS Shares Reliable?

Every working professional and entrepreneur plans things to get some tax relief. It is also an excellent opportunity to do your bit for society and do some CSR work. You can invest in a noble cause, and in return, you get tax reductions. Hence, it is a way to benefit the investor and the society alike.

One such option for investment is the EIS shares. It is known popularly as Enterprise Investment Scheme, under which you can put your money into a business or idea that sounds promising enough to get you a tax rebate in return. The only condition is that the company in which you are planning to put your money is eligible under EIS, so the government legitimately provides you with the tax reduction.

Things Every Investor Should Know About These Shares

It is a program set by the government organizations under which they have a few standards for a company to fall under the program. Any startup eligible for this scheme can invite investors to put money in their business, alluring them of the tax benefits that they can get.

Investors who wish to put money into a cause to enjoy tax reductions can opt for these organizations. You should check if the company or startup you are investing in falls in the EIS category or not. Moreover, you can consider that the ideology or products and services that the company provides comply with your vision so that you feel more connected to the cause. Once everything is perfect, you can put your money into the business and enjoy the tax benefits.

Whether EIS Shares Reliable Or Not?

The reliability factor of EIS is high, and you can rest assured that you have put your money into a promising investment scheme. Firstly, the government authorities check the eligibility before approving them to be a part of EIS. They check to ensure that the company is doing great and have an excellent futuristic approach. So, you can rest assured that your money gets used for a good purpose and that there are negligible chances of any goof-ups that might reduce your share prices.

Another factor that supports the reliability factor is that you already get the tax benefits against your investment. Once you put your money in or buy the shares of an organization that is a part of EIS shares, you become eligible to get tax benefits of up to 30%. So, you already get perks on your investment, and in a way, the raised share prices would be an added advantage.

In the end, you can say that EIS shares is one of the safest and most trusted investments, which benefits you in more than just one way. The only thing an investor has to ensure is to find the best company with an excellent idea to support. Stay vigilant and check the details carefully to avoid any disappointments in the future. Moreover, make sure your sole intention is not tax benefit. Investing to support an idea and perks would be enormous.

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