Collective investment scheme also know as CIS, is a pooled investment, or in other words, it is a type of fund in which a number of people pitch in. This article will help you in understanding what the collective investment scheme actually is.

Four Basic Elements of Collective Investment Scheme:

The four most basic elements of a collective investment scheme are as follows:

  1. The collective investment scheme must have some sort of property involved. The property could be in any form, for instance, it could be in the form of money, gold, land, etc.
  2. The people who are participating in the collective investment scheme do not have everyday control over the property management, although they are allowed to give suggestions and advice on how to manage the property.
  3. The profits and incomes generated from the people who are participating in the collective investment scheme are pooled, also the person who is managing the property has control over all the arrangements.
  4. The whole point of making arrangements is to give the participants the profit, income or any sort of revenue generated by the property.

If you have your doubts about investing in this scheme then leading Knoxville bankruptcy lawyer will help you in getting a better understanding of the collective investment scheme. You can always get a legal consultation beforehand to avoid any confusions and scams.

If you see a collective investment scheme somewhere you need to first check whether or not it is licensed. Even if the company is giving you advice on the scheme it should be licensed by the Public Register of Licensed Persons and Registered Institutions. Always think things through before you make a decision especially if you are about to invest quite a large sum.