{"id":146311,"date":"2023-08-24T14:04:34","date_gmt":"2023-08-24T08:34:34","guid":{"rendered":"https:\/\/www.regenesys.net\/reginsights\/?p=146311"},"modified":"2025-11-18T13:14:16","modified_gmt":"2025-11-18T07:44:16","slug":"understanding-asisas-classification-of-collective-investment-schemes-in-south-africa","status":"publish","type":"post","link":"https:\/\/www.regenesys.net\/reginsights\/understanding-asisas-classification-of-collective-investment-schemes-in-south-africa","title":{"rendered":"Understanding ASISA’s Classification of Collective Investment Schemes in South Africa\u00a0"},"content":{"rendered":"\n
When it comes to investing in South Africa, one of the key considerations for investors is choosing the right collective investment scheme. To assist investors and financial advisors in navigating the vast array of investment options, the Association for Savings, and Investment South Africa (ASISA) provides a comprehensive classification system for collective investment schemes. ASISA’s classification aims to bring clarity and consistency to the industry, helping investors make informed decisions that align with their financial goals and risk tolerance. In this article, we will explore how ASISA classifies collective investment schemes in South Africa.<\/span> <\/span><\/p>\n\n\n\n Collective Investment Schemes (CIS), also known as unit trusts or mutual funds, pool money from multiple investors to invest in a diversified portfolio of assets managed by professional fund managers. A CIS allows investors to access a variety of asset classes and investment strategies without directly owning individual securities.<\/span> <\/span><\/p>\n\n\n\n ASISA classifies collective investment schemes based on two primary criteria (referred to as Tier 1 and Tier 2) and further sub-categories. <\/span> <\/span><\/p>\n\n\n\n In the first tier, ASISA considers how much of the CIS is invested in South African assets and\/or is held in foreign assets. <\/span> <\/span><\/p>\n\n\n\n In the second tier, the CIS is categorised based on the asset classes the fund is invested in. The second-tier categories are Equity Portfolios, Multi Asset portfolios, Interest Bearing portfolios and Real Estate portfolios. <\/span> <\/span><\/p>\n\n\n\n The second-tier classifications are further classified according to subcategories which are based on the risk, strategy, sector, or term of the underlying fund investments in the CIS. Examples of sectors include “Low Equity,” “Medium Equity,” “High Equity,” “Interest Bearing,” and “Real Estate.”<\/span> <\/span><\/p>\n\n\n\n
<\/a><\/figure>\n\n\n\nWhat are Collective Investment Schemes?<\/span><\/b> <\/span><\/h3>\n\n\n\n
ASISA’s Classification System:<\/span><\/b> <\/span><\/h3>\n\n\n\n
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