What are the features of a collective investment schemes. (like unit trust and mutual fund)
Features :
1) One of the most important feature is pooling of funds by various investor and investing that amount in a security for gain.
2) The investor whose money is investmed in a collective investment scheme(CIS) cannot have day to day interation with his/her investment as it is managed by the body that offers CIS. Such as mutual fund, unit trust etc.
3) It is a vehilce in which profits are carried to each investor taking part in the CIS. Participants/Investor or simply person who invests in a CIS are guaranteed their stake of interest and return over the priod of time.
4) The CIS are regulated by body of experts. They have knowledge of the market and finance and therefore they are considered to make best investment judgment of pooled fund from various investor.
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