![]() If your investment is shares, the percentage of the business that you own will decrease if the business issues more shares.The value of your investment can be reduced.A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Spreading your money across different investments makes you less dependent on any one to do well. Putting all your money into a single business or type of investment for example, is risky.Some platforms may give you the opportunity to sell your investment early through a ‘secondary market’ or ‘bulletin board’, but there is no guarantee you will find a buyer at the price you are willing to sell.You may find that you do not have access to your funds until later than expected. If the business you invest in does not meet its targets, it may not be able to pay you on the scheduled dates.Even if the business you invest in is successful, it is unlikely that you will be repaid before the end of the specified term.You should do your own research before investing. Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through.It only means that any potential returns will be tax free. An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. Certain of these investments can be held in an Innovative Finance ISA (IFISA).Investors in these shares or bonds often lose 100% of the money they invested, as most start-up businesses fail. Most investments are shares in start-up businesses or bonds issued by them.You could lose all the money you invest.Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
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