managed investment scheme
In Australia, investor can choose from a wide variety of investments which include managed investment schemes (MIS) and direct investment which consist of shares, debt and hybrid securities. Each investment scheme will a set of corporation act to protect its investor, as it is important to make investors feel confident and secure. Investors can choose the types of investments to invest in depending on their personal traits and ambition as the different investment contains different characteristic. We will dive in more on MIS, direct investment and hybrid investment together with each of their advantages and disadvantages next.
Managed investment schemes
Manage investment schemes, otherwise known as collective investment schemes, are schemes in which funds are gather from different investor to invest in a common investment, usually a high risk investment that deals with huge amount of money.
Under s 9 of the corporation act 2001, a manage investment schemes consist of three elements. Investor contributes money or money’s worth, there’s a generation or intended generation of a financial return or benefit and the investor do not have day-to-day control over the use of the money.
Under s 601EA(4) states that a registered MIS requires to have a responsible entity (RE) which would be responsible for any losses or damages from violating Ch 5c. The RE is also a trustee of the scheme.
The RE also have to fulfil his duties, under the s 601FC (1), he must act honestly, exercise a degree of care and diligence, act in the best interest of the members, treat all members equally and he can’t make use of information gathered as RE to gain improper advantage or cause detriment to members.
Under s 601MB, Contracts is considered as voidable at the option of the investor if the MIS is found guilty of violating any of the act.
The advantage of MIS is that the investment will be undertaking by a professional investment manager which could offer a better returns and risk
Managed investment schemes
Manage investment schemes, otherwise known as collective investment schemes, are schemes in which funds are gather from different investor to invest in a common investment, usually a high risk investment that deals with huge amount of money.
Under s 9 of the corporation act 2001, a manage investment schemes consist of three elements. Investor contributes money or money’s worth, there’s a generation or intended generation of a financial return or benefit and the investor do not have day-to-day control over the use of the money.
Under s 601EA(4) states that a registered MIS requires to have a responsible entity (RE) which would be responsible for any losses or damages from violating Ch 5c. The RE is also a trustee of the scheme.
The RE also have to fulfil his duties, under the s 601FC (1), he must act honestly, exercise a degree of care and diligence, act in the best interest of the members, treat all members equally and he can’t make use of information gathered as RE to gain improper advantage or cause detriment to members.
Under s 601MB, Contracts is considered as voidable at the option of the investor if the MIS is found guilty of violating any of the act.
The advantage of MIS is that the investment will be undertaking by a professional investment manager which could offer a better returns and risk