Collective Investments Flashcards
1
Q
What is a collective investment scheme ?
A
A scheme where members of the public are invited to invest money or other assets in a portfolio, and where two investors contribute money and hold interest in a portfolio
2
Q
Why have unit trusts been so popular in SA ?
A
- they offer an opportunity for ordinary investors to gain access to blue chip companies listed on JSE
- Process is simple and straight forward
- investment is affordable
- investment is made attractive due to tand cost averaging
3
Q
Types of collective funds
A
- Money market fund
- general equity fund
- bond fund
- hedge fund
- property unit trusts
