Funds Investing

Institutions obtain administrative and, sometimes, taxation benefits by using mutual funds to manage their own assets. Such funds are invariably not available to the general public. Funds that are authorised to be promoted to the general public (frequently referred to as ‘retail funds‘), usually extol the benefits to the private individual, namely:

1. Small investment required

Although both minimum holdings and minimum initial amounts are usually required, individuals can invest comparatively small sums of money in mutual funds, particularly through plans that accept regular subscriptions. So-called ’small investors‘ can thereby obtain the benefits of worldwide economic activity (hopefully growth) rather than allowing these to be enjoyed by the banks (and their shareholders) and others with whom they deposit their funds in return for an interest income. Read the rest of this entry »

No amount of regulation will protect the foolish investor nor will it eliminate fraudsters. However, sensible regulation coupled with focused monitoring and informed alert investors:

1. enhances the reputations of the world’s investment industries;
2. increases the involvement of ordinary individuals in investment; and
3. improves the opportunities for Governments and commercial enterprises to foster economic growth.

The categories of activity in which regulations seek to provide investor protection can be summarised as follows: Read the rest of this entry »