The investor holds units or shares in the fund. Diversification does not prevent losses: risk depends on the assets held and the fund’s rules.
Collective investment fund (OPCVM)
In a nutshell
An OPCVM pools money from several investors to buy a professionally managed portfolio of securities.
On this page
Explained simply
A practical example
Hypothetical example: buying a unit in a bond fund gives an investor exposure to a portfolio of bonds rather than buying each security separately.
Further reading
Source: AMF — Collective investment schemes.
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What this means
10 units bought at CFA 10,000 are worth CFA 110,000, a potential CFA 10,000 gain before fees.
Educational scenarios. Amounts and rates are fictional, not current market conditions.