Collective Investment Undertaking

A legal entity or segregated assets established to raise funds from multiple investors, which are invested collectively according to a defined investment policy and strategy. Investors acquire units or shares, bearing the risk and receiving the benefits from the performance of the overall portfolio. Collective investment undertakings are divided into mutual funds and investment companies. They are regulated by the Collective Investment Schemes and Other Collective Investment Undertakings Act and supervised by the Financial Supervision Commission. Their primary purpose is to provide professional management and diversification of investments, thereby reducing the individual risk for investors.