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The Investment Fund is then managed by a Collective Investment Scheme (CIS) Manager who invests the capital in different types of assets including stocks, bonds and even real estate with a view to diversify risk. The money returned to the investor can be higher or lesser than what has been invested depending on the performance of the Investment Fund.
In Mauritius, there are two main categories of Investment Funds:
1. Collective Investment Scheme (‘CIS’) which is a pooled fund invested in a diversified portfolio consisting of assets such as
shares, bonds or property with the aim of generating returns.
2. Closed-end Fund (‘CEF’) is a pooled fund with a fixed number of shares/units. However, unlike a CIS, if you invest in a CEF, you
do not have the flexibility of requesting your money back from the CEF as and when you wish. It will all depend on the terms of
the investment plan. A CEF has a limited life after which the value of its assets is distributed among its investors.
There are also other sophisticated types of Investment Funds, which are different sub-categories, namely: Professional CIS, Specialised CIS and Expert Funds.
You may contact a licensed professional CIS Manager or the FSC Mauritius for more information.
Whether to invest in Securities or in an Investment Fund will depend on your personal circumstances, how much money you can invest and for how long, as well as the risk you are willing to take. It is always best to seek the advice of a licensed professional.
Investment is a way to make your money work for you if you want to achieve more financial power. People usually invest because they want to achieve financial independence and goals, a sense of security and to be able to afford the things they want in life.
To invest in Investment Funds, an investor needs to contact a CIS Manager (commonly referred to as an Investment Manager or Fund Manager) who is licensed by the FSC Mauritius. The CIS Manager, which can be a company, is responsible for the management and operations of the Investment Fund. The CIS Manager will take most of the decisions and give instructions to investment dealers on when to invest on behalf of the Investment Fund. When managing the investments, there are charges that are incurred, such as management fees paid to the CIS Manager, subscription fees paid for processing the requests for investment in the Investment Fund, brokerage fees paid to investment dealers who undertake the buying and selling transactions of the investments, amongst others.
A list of all licensed professionals in the investment industry – Investment Dealers, Investment Advisors and CIS Managers – is available on the FSC Mauritius website, http://www.fscmauritius.org .
Whether to invest in Securities or in an Investment Fund will depend on your personal circumstances, how much money you can invest and for how long, as well as the risk you are willing to take. It is always best to seek the advice of a licensed professional.
Investment is a way to make your money work for you if you want to achieve more financial power. People usually invest because they want to achieve financial independence and goals, a sense of security and to be able to afford the things they want in life.
When you diversify your investments, you ensure that if one part of your investment does not do well, you will not lose everything.
Diversifying your portfolio means investing in different sectors or asset classes (stocks, bonds, real estate etc.)
Stocks
A small share of a company that anyone can buy. Stocks are volatile and while you can make a lot, you can also lose a lot. You can invest through an Investment Dealer (previously known as a stockbroker). Stocks are often a large part of managed portfolios.
Bonds
A bond is a kind of loan with interest. They are often issued by corporate or governments. Interest rates normally exceed the
interest rate of banks. However you do assume more risk when investing in a bond than a standard savings account. Instead of
investing only in bonds, you can also think about diversifying your investments. Bonds can be purchased directly through the
government, or a brokerage or trading platform. They are often included in managed portfolios too.
Real Estate
Involves purchasing real estate such as apartments, land or houses. There can be a high barrier to entry as property is
expensive. You can invest directly from a property owner or a broker.
You can consider enlisting the services of investment advisers before investing. After having done so, you may wish to ask the following questions: