MUTUAL FUND ASSOCIATION OF TRINIDAD AND TOBAGO
"STRENGTHENING THE ENVIRONMENT FOR INVESTOR CONFIDENCE"

Mutual Funds and the Securities Market

Every new year, many individuals embark on a journey to increase their investment portfolio. The securities market provides individuals with many different options to achieve this goal with products such as equities, bonds and Collective Investment Schemes (CISs). With this in mind, this article focuses on CISs.

Commonly known as mutual funds, CISs are investment vehicles which allow for the pooling of investor resources to create a more diversified portfolio to receive the benefits of large-scale investment opportunities. Investors effectively own portions of the overall “pool of money”, or fund, through units/shares which are proportional to their contributions. The mutual fund manager then utilises the fund to invest in securities aligned with the associated investment strategy. Investors can earn returns through distributions or capital appreciation based on the fund’s performance.

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