Nature of Funds
The funds are open-ended investments made available through life assurance companies. Unlike most collective investments there is no independent body tasked with safeguarding the assets. The company may manage, promote and hold the assets on behalf of the policyholders. The policyholders have rights to the assets but do not own the units, nor are they readily redeemable.
This said, in practice life insurance companies tend to be well regulated and depend on their reputation which ensures consumer confidence when investing.
Read more about this topic: Unitised Insurance Fund
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“In like manner, what good heed, nature forms in us! She pardons no mistakes. Her yea is yea, and her nay, nay.”
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