EIS fund manager Ingenious Ventures has launched its fifth Shelley Media Fund.

The fund will back EIS-approved companies producing films, television programmes and video games, with a minimum investment of £3,000 (€3,500). 

The firm expects to generate annual tax-free returns of 13.7 per cent, which is a gross equivalent return of 27.3 per cent for a 50 per cent taxpayer. 

EIS tax relief has increased to 30 per cent against 2011/12 income tax liability. 

Ingenious has $10bn under management in the entertainment sector. It has backed Avatar, the highest-grossing film of all time, and around 400 hours of television programming for ITV, BBC, SKY and PBS, such as Foyle’s War and Law & Order: UK.

Cinema and premium online film content have held up well in the recession. 

Worldwide revenues from filmed entertainment through theatrical release, video/DVD and digital sources are anticipated to grow to $114.8bn (€83bn) by 2015 compared with $86.2bn in 2010. 

The UK is the largest television market in Europe. TV subscription and licence fees are forecast to increase from a base of £11.9bn in 2010 to £14.7bn in 2015.