Investing in shares listed on the Alternative Investment Market (AIM) provides a chance to participate in the success of some of the country s – indeed, the world s – fastest growing companies. The likes of drinks mixer producer Fever–Tree and online fashion retailers Asos and Boohoo. But it s not without risk.
For every success story such as Fever-Tree – its share price is up by 265 per cent over the past five years – there is a failure like high street café chain Patisserie Valerie, which collapsed into administration in 2019, leaving investors holding worthless shares.
It explains why many prefer to invest in such businesses through a smaller companies investment fund that has exposure to a broad portfolio of firms, some of which are listed on AIM.