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The Director General of the SEC, Dr Emomotimi Agama, stated this during an interaction with journalists in Abuja on Wednesday.
CIS is a part of the market system that allows people to diversify their risk besides investing directly in companies.
By pooling funds from multiple investors, CIS can invest in a wide range of asset classes (stocks, bonds and real estate), reducing concentration risk.
The invested Funds are managed by experienced fund managers who have the expertise to make informed investment decisions, saving investors the time and effort of managing their portfolios.
Agama said: “In the collective investment schemes, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via one route as different from going to invest directly in any company.”
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