Comment on the following in light of SEBI (Collective Investment Schemes) Regulations, 1999: (i) Can a collective investment scheme provide guaranteed returns ?

No, a Collective Investment Scheme (CIS) is prohibited from providing guaranteed or assured returns as per the SEBI (Collective Investment Schemes) Regulations, 1999. The nature of CIS involves investments in assets that carry market risks, and therefore, guaranteeing returns would be misleading to investors. However, an indicative return may be mentioned in the offer document only if it has been assessed by an appraising agency and is expressed in monetary terms.