What does CIV mean in INVESTMENTS

A collective investment vehicle (CIV) is an investment structure that pools the resources of a group of investors for the purpose of investing in collective instruments. These include stocks, bonds, commodities and other securities. A CIV allows investors to access investments which may not be available to them individually. The pooled funds are managed by professional fund managers who manage the portfolio according to predetermined objectives.

There are four main parties involved in a CIV; the issuer, the manager, the custodian and the investor(s). The issuer is responsible for issuing and redeeming shares or units in the CIV. The manager manages the investments according to predetermined guidelines, while the custodian holds and safeguards all assets. Lastly, investors provide funding through subscription of CIV units or shares.

Investing in a CIV offers several advantages for investors including diversification across multiple asset classes/markets, access to expertise from professional fund managers, professionally managed portfolios, regular valuations/reporting on investments and economies of scale due to lower transaction costs when compared to retail investments.

Generally speaking, you can invest in a CIV via lump-sum payments or through periodic instalments such as monthly savings plans. Depending on your investment style and preferences each option comes with its own benefits and risks which should be considered before making any decisions.

Assets held within collective investment vehicles often include stocks, bonds and various derivatives with some CIVs also specializing in specific asset classes such as commodities or foreign exchange markets. Additionally, some funds offer exposure to alternative investments such as private equity or venture capital funds.

Before investing it's important to assess your current financial situation and determine what type of risk you're willing to accept given your investment goals. Additionally, it's important to understand what type of return expectations you have before deciding if an investment into a CIV suits your needs. Generally speaking seeking professional advice can help you establish if this type of investment is appropriate for you financially as well as considering any other potential personal considerations relating goals or values associated with certain instruments or sectors.

Generally speaking it depends on the country where you’re based but most jurisdictions impose taxes on capital gains made from investments within these vehicles as part of their broader income tax regime either at source or post-distribution level depending on their regulations.

You should receive regular updates from your manager on its performance along with periodic reports outlining how each objective has been met over time but you can always request more frequent reports if desired.