Management of collective investment schemes registered in Malta

Abstract

To invest is to set aside money in the expectation of earning a profit by way of income or capital growth. Investing is totally different from saving. One saves in order to build his capital. When one invests he is said to be using his capital - to obtain income on long term capital growth. One form of investment which has very recently become available for the prospective investors in Malta is Collective Investment Schemes. The aim of participating in a Collective investment Scheme is that the personal investor will be able to participate in investments which he might not be able to participate in should he wish to invest on his own. Another advantage of investing through a Collective investment Scheme is that these Schemes diversify their investments. Thus although an investor may be investing in only one scheme, he may still be considered to have a sort of a diversified portfolio. The Fund Manager plays a major role for a Collective Investment Scheme to actually function. This study will examine how Collective Investment Schemes were developed internationally. We will also see what legislation and regulatory bodies will control the function of the Fund Manager within a Collective Investment scheme [...].