Ingenious Ventures has launched its fifth Shelley Media Fund, which will invest in Enterprise Investment Scheme (EIS) companies in the entertainment sector.

The company, which is part of financial services group Ingenious, confirmed that the new fund will have a minimum investment amount of £3,000 and that it is expected to generate tax-free returns of 13.7 per cent per annum.

The fund will invest in businesses producing films, television programmes and video games.

Ingenious Ventures has set up the fund in the belief that media sectors have continued to achieve sustained growth.

Stephen Fuss, investment director at Ingenious Media Investments, said, ‘The fund invests in an area in which we have unparalleled expertise and, in a period of continued economic uncertainty, we feel this is a unique alternative investment opportunity.’

He added that the company has predicted an increase in investment this year as a result of the uplift in EIS income tax relief to 30 per cent.

Investors in the fund will be able to claim tax relief against 2011/12 income tax liability.

EIS qualifying investments also allow investors to defer capital gains tax for gains realised within three years prior to, or up to 12 months after, investments are made by the fund.

Those investments that are held for more than two years are also subject to relief from inheritance tax.

To date, Ingenious has raised in excess of £280 million of EIS funding.