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Understanding Investment Portfolios and Collective Investment Schemes

Have you ever wondered how Investment portfolios within various companies work and how they make money?

Let's talk about Collective Investment Schemes (CIS) – and how Understanding collective investments and how investment portfolios work.


people looking at market data

Section 1: Meet the Investment Squad

Imagine your money is in a big group (pool) with other people's money (collective). It's like a team of experts called fund managers taking care of everyone's cash. They know the money game inside out and have mandates in which they are allowed to purchase assets within each portfolio to try and construct the best possible outcome for you – the investor!


Section 2: Your Money Buffet - Asset Classes

  1. Shares (Stocks): Think of shares like owning tiny parts of big companies. When those companies do well, your money party gets bigger!

  2. Bonds: Bonds are like loans you give to companies or governments. They promise to give your money back with a bit extra. It's like your money earning interest!

  3. Cash (Money Market): Some of your money hangs out in the cash zone. It's like having some coins in your pocket for quick access when needed.

  4. Properties (Real Estate): A part of your money might live in real estate, like buildings or land. If property values go up, your money dance gets livelier! These property portfolios invest in property development companies and actual commercial and retail buildings like shopping centers.


Section 3: How Your Money Grows

  1. Diversification Magic: Imagine your money as a team with different players – some strong, some speedy. If one player isn't doing great, others might score big. That's diversification – spreading the risk!

  2. Expert Moves (Fund Managers): Professionals (fund managers) are like money magicians. They make clever moves to grow your cash. They study the money world 24/7, so you don't have to stress.

  3. Time is Money's BFF: The longer your money hangs out, the more friends it makes. Time is like a superhero for growing money – it helps it multiply!


Conclusion:


Investment portfolios across the investment landscape work on this basic principle where the portfolio holds assets/ shares in various asset classes and various businesses the portfolio manager of each selected portfolio is the person along with his team of analysts look at the markets, potential businesses and data to determine opportunity all the while, you continue with your day to day items like work and general life.

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