This archive report was first published on 7 November 2019.
What are Collective Investment Schemes? ¶
A collective investment scheme is a pool of funds managed on behalf of investors by professional fund managers, providing access to a range of investments.
There are two types of CIS permitted by the Capital Markets Act: Mutual Funds and Unit Trusts.
Photo: UGC.
Investors can choose from various types of funds, including equity funds, fixed income funds, balanced funds, and money market funds, each with its own investment objectives and risk profiles.
Investing in collective investment schemes has several advantages, including diversification into a broad range of securities and liquidity through the ease of buying and selling securities.
However, investors should be aware of the fees and other costs associated with these schemes, which can impact their returns.
Despite these costs, collective investment schemes remain a popular choice for investors seeking professional management and satisfactory yields.
Investors should carefully consider their options and weigh the benefits against the costs before making a decision.
Ultimately, collective investment schemes can be a great investment vehicle for those looking to grow their wealth.
Source: UGC
Published on November 7, 2019
