Tuesday 6 August F ledgling companies are often considered a high risk home for investors, but success stories such as online fashion retailer Asos could prove appealing to Isa holders who can now put their money in stocks floated on the Alternative Investment Market Aim.

Changes to Isa rules mean that from 5 August investors can now hold some or all of their annual allowance in Aim shares. An array of other well known Aim-listed companies such as Majestic Wine have also richly rewarded investors. Buying individual shares on this market is not for the faint-hearted, as they do not have large sums of cash to shore up their balance sheets and can prove volatile.

However, if you are prepared to take a risk they offer opportunities for profit. Patrick Connolly from independent financial advisor Chase de Vere says: Over most reasonable time periods it is likely that smaller companies will outperform their larger counterparts.

If you want to buy individual shares you will need to buy your Isa from a firm that offers access to share dealing. A less risky way to invest in Aim stocks than buying them directly is to invest in a smaller companies fund.

Isa 'Can I keep inheritance tax break when Aim shares get promoted?'

A fund manager will select the shares and spread your money across many companies. A fund can also be held in a stocks and shares Isa. Aim stocks are likely to have minority appeal to investors, but it is worth exploring what you can hold in your Isa and making sure you are making the most of your money.

Whatever you choose, here are five tips to help you maximise your returns:. Even the experts have a tough time predicting which assets or sectors will perform best, so avoid sticking to one particular type of investment for your portfolio.

He favours the Schroder Managed Balanced fund for this approach, while Connolly recommends Cazenove Multi Manager Diversity.

A common investment mistake is to buy based on short-term performance figures, or when a fund or share has peaked in value, and sell when things turn sour, losing money in the process. It is best to take a measured approach to investing, Lowcock says. Investing regular premiums rather than one-off lump sums is a sensible way to tackle uncertain times or periods of stock market volatility.

This means you are able to buy a greater number of shares when the share price falls, which will result in higher overall investment returns when a recovery takes place. Monthly savings also help remove the risk of emotional bias, as you won't be buying based purely on sentiment at the time.

Investors snap up opportunity to put AIM shares in their Isas | This is Money

Check your investments once a year to make sure they remain in the right shape to meet your objectives and attitude to risk, and don't fall into the trap of becoming too attached to certain investments, says Helal Miah, investment research analyst at The Share Centre.

Discount brokers and advisers including Bestinvest , Chelsea Financial Services , and Hargreaves Lansdown, refund you most — if not all — of this charge when you invest. Please choose your username under which you would like all your comments to show up. You can only set your username once.

International edition switch to the UK edition switch to the US edition switch to the Australia edition. The Guardian - Back to home. Isa holders are able to put their money in Aim stocks.

If you are prepared to take a risk they offer profit opportunities — but it's not for the faint-hearted. Whatever you choose, here are five tips to help you maximise your returns: Invest in a mixture of assets Even the experts have a tough time predicting which assets or sectors will perform best, so avoid sticking to one particular type of investment for your portfolio. Ignore fashionable investments A common investment mistake is to buy based on short-term performance figures, or when a fund or share has peaked in value, and sell when things turn sour, losing money in the process.

Make regular contributions Investing regular premiums rather than one-off lump sums is a sensible way to tackle uncertain times or periods of stock market volatility.

Be prepared to tweak your portfolio Check your investments once a year to make sure they remain in the right shape to meet your objectives and attitude to risk, and don't fall into the trap of becoming too attached to certain investments, says Helal Miah, investment research analyst at The Share Centre. Investments Shares Stock markets features. Order by newest oldest recommendations. Show 25 25 50 All. Threads collapsed expanded unthreaded.

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