MI Capital Research Ltd (MICAP) is an independent due diligence and research provider of alternative investments. Neither MICAP nor its principal firm, Resolution Compliance Limited, offer advice on these investments. Nothing on the website may be relied upon as a basis on which to invest and independent assessments should be made as to the appropriateness and risk profile of potential investments.
The investments MICAP displays on its website are alternative and unlisted. As such they are relatively high risk and illiquid. Investing in such companies can be rewarding, but it involves a number of risks and challenges. If you choose to use the MICAP website, you need to be aware of and accept four important considerations:
Loss of Capital
Past performance of any investment is not necessarily a guide to the performance of similar investments in the future. When investing in unlisted companies there is a risk that you may not get back what you put in if a company turns insolvent. You should only invest as much as you can afford to lose and as part of a diversified portfolio. You should not invest more money in unlisted companies than you can afford to lose without altering your standard of living.
Any investment you make in a company featured on the MICAP website is likely to be highly illiquid. There is unlikely to be any active secondary market for the shares of the investee companies. Even for a successful investment, any return on your investment may be unlikely to occur for a number a years from the time you make your investment. In particular, if you are over the age of 60 at the time of making an investment you should consider the effect this illiquidity could have on your lifestyle.
Investing in unlisted companies should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple asset classes as opposed to a large amount in one or a few. It also means that you should invest only a small proportion of your investable capital in this asset class, with the majority of your investable capital invested in safer, more liquid assets.
You are responsible for the administering of your own tax affairs, which may include capital gains and/or income tax.MI Capital research Ltd does not provide tax advice and you should seek this independently before investing if you are unsure of your position. It is your responsibility to ensure that your tax return is correct and is filed by the deadline and any tax owing is paid on time. If you are unsure how this investment will affect your tax status, you must seek professional advice before you invest.