InvestorQ : What is Collective Mutual Fund? How is it different from Mutual Funds?
leah Diaz made post

What is Collective Mutual Fund? How is it different from Mutual Funds?

Answer
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2 years ago


Though Collective Investment Scheme (CIS) and Mutual Funds are a pool of investors money, they both are different. Let us know how.

Mutual Funds collects investment from investors and created a fund that is invested in a diversified portfolio. The investment in the Mutual fund (MF) includes equity, debt, gold, G-sec bonds, etc. These investment done by (MF) is published in a report that contains the detailed information about the investment, performance, Vale, etc. Mutual fund is a regulated market with SEBI and AMFI as a regulatory body.

Collective Investment Scheme (CIS) also collects funds from investors with a mutual interest in investing a particular asset. The returns generated from this investment is shared as per agreed by the investors in the agreement entered prior investing the funds. The main difference of CIS is that it is not regulated with SEBI although as per laws every CIS should be registered with SEBI.