Law-Finance

CORPORATE LAW

Legal and Regulatory Aspects of:

Collective Investment Schemes and Microfinance

August 2013

Under the guidance of:

Professor Mr. Anant Amdekar

Group- 3

Roll No. | Team Members |

12107A0063 | Apeksha Malekar |

12115B0001 | Mohsin Shaikh |

12115B0003 | Ravindra Ahire |

12115B0004 | Niraj Agarwal |

12115B0010 | Manish Khandare |

12115B0013 | Snehal Wayangankar |

12115B0019 | Vanitha Paul Pandi |

12115B0021 | Akshaya Kadam |

12115B0025 | Ajinkya Kulkarni |

12115B0033 | Aniket Sulakhe |

Collective Investment Scheme:

A type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment. A collective investment scheme may also be called a mutual fund. Similar to a mutual fund, a collective investment scheme provides almost absolute control of the investment to the company pooling and investing the money.

CIS, as the name implies, is an avenue provided by a company (or persons so qualified) for the collection funds from a wide range of investors. The funds collected form a pool which the company invests in a portfolio of securities to earn returns.

Collective schemes serve as flexible savings vehicle for individuals, corporate bodies, associations, clubs, etc. to accumulate funds for future needs.

A Collective Investment Scheme may be a Unit Trust or a Mutual Fund.

A collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. These advantages include an ability to

* Hire a professional investment manager, which theoretically offers the prospects of better returns and/or risk management

* Benefit from economies of scale - cost sharing among others

* Diversify more than would be feasible for most individual investors which, theoretically, reduce risk.

Terminology varies with country but collective investment vehicles are often...