Investors looking for a home for a minimum of £10,000 (€12,697) might consider putting their funds into forestry. Royal Irish Silvaculture is currently seeking to raise £1.1 million in its fourth fund which will be invested in the plantation and cultivation of Noble Fir Christmas trees.

The company has been in existence for seven years and the first Christmas trees to be harvested will be sold to European markets next winter. To participate investors should have a minimum of £10,000 and be prepared to tie it up in the fund for nine years. At the end of that period, the promoters estimate that investors will qualify for an equivalent return of around 13.4 per cent. Any investment gains will be tax free as income from forestry is exempt from tax.

Of the £10,000 contributed, £9,550 is treated as a loan to Royal Irish Silvaculture, with the remaining £50 converted into shares. After six years the loans are fully repaid and the investment return is distributed three years later. Investors should note that none of the funds are guaranteed and the projected returns are just estimates. The fund closes at the end of March. Those interested are invited to visit lands already planted by Royal Irish Silvaculture in Carlow over the next two weekends. Royal Irish Silvaculture can be contacted at 01 662 8666.