Explain the following: Collective investment scheme (CIS) provides a relatively secure means of investing on the stock exchange and other financial instruments.

A collective investment scheme is a trust based scheme that comprises a pool of assets that is managed by a collective investment scheme manager and is governed by the Collective Investment Schemes Regulations prescribed by SEBI. Collective Investment Schemes provide a relatively secure means of investing on the Stock Exchange and other financial instruments. The sums of money that are exchanged on the Stock Exchange and in the money markets make them too pricy for most people. With a CIS, the money or funds form a group of investors are pooled or collected together to form a CIS portfolio.