Collective Investment Schemes
Ensure that the entity is registered with SEBI
Read the offer document of the scheme carefully
Check the viability of the project
Check and verify the background/expertise of the promoters
Ensure clear and marketable title of the property/assets of the entity
Ensure that the Collective Investment Management Company (CIMC) has the necessary infrastructure to carry out the activities of the scheme
Check the credit rating of the scheme and tenure of the rating
Check for the appraisal of the scheme and read the brief appraisal report
Read carefully the objects of the scheme
Check for the promise vis-a-vis performance of the earlier schemes, if any, in the offer document
Ensure that the CIMC furnishes you with a copy of the Annual Report within two months from the closure of each financial year
Note that SEBI cannot guarantee or undertake the repayment of money to the investors
Don’t invest in any CIS entity not having SEBI registration
Don’t get carried away by indicative returns
Don’t invest based on market rumours or advertisements
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