Brendan Gulston, Gresham House UK Multi-Cap fund manager, suggested the Aim share Randall & Quilter, an insurer, although investors should note that it is not clear whether it qualifies for IHT relief.

“The business seems very technical, which often acts as a barrier preventing people from investing in it,” said Mr. Gulston. “But we think it presents a very exciting opportunity for capital growth as well as income.” The stocks have returned 54pc over the past five years and pay a dividend of 2.3pc.

Mr Davies said Aim enthusiasts should also consider VCTs. A selection of these funds specialize in investing in stocks in the London Junior Market, offer 30% tax relief and pay a portion of their returns to investors in the form of dividends, which are tax exempt. Capital gains from FFW are also tax exempt.

“Aim is a stock picking market. If you don’t really know what you’re doing, it’s best to ask a manager to do it for you.

Octopus Aim VCT, Amati Aim VCT and Unicorn Aim VCT have all been very successful, ”he said. The trusts have generated returns of 70pc, 141pc and 98pc respectively over the past five years, but Octopus Aim VCT and Amati Aim VCT are now closed to new subscriptions.

“The Unicorn Aim VCT will open an offer in January, but we don’t expect it to last long,” Davies said. “It could sell out in a week, depending on how much they choose to raise – probably between £ 15million and £ 20million.”