Collective Investment Schemes pool the money of many investors to professionally manage large portfolios of securities. These securities may include shares, debt securities, money market securities or a combination of any of these. Each investor holds a pro-rata share of a portfolio and they are entitled to the profits and losses that accrue to the securities in that portfolio.

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WHAT ARE THE BENEFITS OF INVESTING IN A COLLECTIVE INVESTMENT SCHEME?

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Professional Investment Management

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Collective Investment Schemes hire full-time investment professionals to manage the investment portfolios. These managers have real-time access to crucial market information and they are able to execute trades in a very quick and cost-effective manner.

 

Diversification

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Collective Investment Schemes invest in a broad range of securities. This limits investment risk by reducing the investor’s exposure to a possible decline in the value of any one security. This implies that investors may benefit from diversification techniques that are usually only available to large investors who are able to buy significant positions in a wide variety of securities.

 

Low Cost

 

Collective Investment Schemes allow investors to participate in diversified portfolios at a relatively low cost. For example, one is able to contribute towards such an investment plan for as little as R500.00 per month. For more information about the minimum investment amounts of each fund, please consult the Products section of this website.

 

Convenience and Flexibility

 

An investor in a Collective Investment Scheme would invest in a single fund and yet they enjoy the benefits of a diversified portfolio with a wide range of services. Fund managers are also charged with the responsibility of deciding what securities to trade and they ensure that dividend payments are received and investor rights are exercised. Collective Investment Schemes also make use of the services of high quality custodians and registrars to make sure that investors have ease of mind.

 

Personal Service

 

One call puts you in touch with a specialist investment consultant who can provide you with the information that you require to make your own investment choice. These consultants provide you with personal assistance when you need to buy or sell your investment and they provide you with fund information that may answer any questions that you have about your account status.

 

Liquidity

 

Collective Investment Schemes allow you to get your money back in a prompt manner at the relevant market related prices.

 

Transparency

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You get regular information on the value of your investment and you may be able to obtain information on the specific investments that are made by the Collective Investment Scheme.

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