Ingenious Media Investments, which previously invested in the blockbuster film Avatar and the television programme Have I Got News For You, has launched a new entertainment fund for UK residents and trusts, investing in companies that produce films, video games and television programmes.

The Shelley Media Fund 3, an Enterprise Investment Scheme fund, will have a minimum cash investment of £10,000 (just under $16,000) and will be open for investors until 5 April 2011, subject to capacity.

“The fund will only invest in companies engaging on commercially attractive projects where production funding is fully covered by an entitlement to minimum contracted revenue streams,” said Dylan Jones, investment director at Ingenious Media Investments.

The fund will aim to provide investors the opportunity to achieve a target average pre-tax annual return of 14 per cent for a targeted three- to four-year investment window under a conservative investment strategy, said the firm in a statement.

UK investors can use the beneficial tax treatments associated with the EIS regime. Investors must subscribe at least £10,000, with an upper limit of £500,000 per individual (or £1 million per couple).