1. Which of the following are collective investment schemes in South Africa?

All unit trusts and all exchange traded funds

All real estate investment trusts

Unit trusts, hedge funds and most, but not all, exchange traded funds

All shares

2. Who can manage the money you invest in a collective investment scheme?

Any company can operate a collective investment scheme without registering

You have to be a trustee to manage a collective investment scheme

A small boutique asset manager may not manage a collective investment scheme

Only management companies with a collective investment scheme licence and managers licenced under the Financial Advisory and Intermediary Services Act

3. What tax do you pay on a collective investment scheme?

The tax is paid by the fund

Only capital gains tax when you sell your fund

No tax, collective investment schemes are exempt from tax on interest, rental, dividends and capital gains

You will be liable for tax on the interest, rental and dividends as these are distributed and capital gains tax when you sell your investment. This is not the case if your fund is a tax-free savings one or you invest through a retirement fund

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Collective Investments Schemes

What is a collective investment scheme?

How am I protected when I invest in a collective investment scheme?

How do I pay tax on my collective investment scheme?

How can I pay the least tax on my collective investment scheme?

Test your knowledge on collective investment schemes with our quiz

Test your knowledge on collective investment schemes with our quiz

Test your knowledge on collective investment schemes with our quiz