There are two broad categories of Investment Funds, which are regulated in Mauritius.
These are the Collective Investment Scheme (“CIS”) and the Closed-End Fund (“CEF”).
The key features and activities of a CIS are as follows:
- Pooling of funds from investors
- Collective investment of those funds into a portfolio of investments
- Investment based on risk diversification principle
- Redemption at the option of the investors
- Investors do not participate in the day to day management
The key features and activities of a CEF (used for Private Equities) are as follows:
- Funds are raised from public, retail and/or sophisticated investors as per prospectus
- Arrangement or a scheme, other than a CIS, constituted in legal form
- Investment of funds, collected from subscribers during an offering of a portfolio of securities, or in other financial or non-financial assets, or real property
- Investors do not participate in day to day management