Collective Investment Trusts are also known as collective investment funds (CIF). CIT are only available to qualified retirement plans and are not available to the public. This is a fun activity in which a diversified portfolio is created by pooling the money of many investors. It is the job of the fund manager to manage this Portfolio.
Following Characters of Collective Investment Fund(CIF)
1. Cost
Collective Investment Trust (CIT) is considered as low-cost due to its lower fees, lack of marketing, simple structure, tax savings, and direct management. These factors are considered low-cost retirement plans, and participants get higher returns.
2. Management
This is managed by company trusts and banks. Company trust acts as a trustee and manages the Collective Investment Trust (CIT).
3. Information
This fund information is strictly restricted to the public. This information is only provided to participants by their plan sponsor or record holders.
4. Regulation.
This CIT is regulated by the state banking regulatory body from the US office.
5. Investment strategy
CITS invest in stock market, bonds, mutual funds, ETFs.
