Is a Collective Investment Fund (CIF) like a mutual fund?
A CIF is similar to a mutual fund in that it is a pooled vehicle for investments; but there are a number of important differences. To invest in a mutual fund, an individual merely needs to meet the minimum investment threshold established by the fund. There are no eligibility barriers or restrictions on the type of assets used to invest in one of these funds. By contrast, entry to and exit from a CIF is usually not as easy as investing in or selling shares from a mutual fund. Entry into a CIF is limited to those bank customers who fall within the eligibility criteria set forth in the banking and securities laws.