A Fund is a structure whose activities involve the investment of funds and whose operation is based on the principle of diversification of risk

A Fund is a structure whose activities involve the investment of funds in a portfolio of securities and whose operation is based on the principle of diversification of risk
The Securities Act 2005 broadly provides for two categories of Funds:

  1. Open-ended Fund, also known as a Collective Investment Scheme (‘CIS’)
  2. Close-ended Fund, commonly known as the Private Equity (PE) Fund

Collective Investment Schemes (‘CIS’)

A Collective Investment Scheme means a scheme constituted as a company, a trust, or any other legal entity prescribed or approved by the FSC

  1. Whose sole purpose is the collective investment of funds in a portfolio of securities, or other financial assets, real property or non-financial assets as may be approved by the Commission
  2. Whose operation is based on the principle of diversification of risk
  3. That has the obligation, on request of the holder of the securities, to redeem them at their net assets value, less commission or fees
  4. Where the participants do not have day to day control over the management of the property, whether or not they have the right to be consulted or to give directions in respect of such management

Categories of CIS:

  1. Retail CIS
  2. Professional CIS
  3. Specialised CIS
  4. Expert Fund

Close-ended Funds

The share price for a close-ended company is fixed.
The redemption of shares by the investors may be allowed.
A closed-end company may have its shares or units listed on a securities exchange allowing investors to buy and sell shares thus preventing any lock in.

Key Features


Two resident directors are mandatory.

A qualified Mauritian resident company secretary is required.

Internal Control

Every CIS manager shall establish documented rules of internal control to allow:

  1. The efficient supervision of the activities of the CIS manager
  2. The effective supervision of all employees of the CIS manager
  3. To ensure compliance with the Act and any regulations and rules made thereunder


The interests of participants in a collective investment scheme shall consist of shares or fraction of shares and each share or fraction of share shall be treated as representing the interest of the participant in the capital assets of the collective investment scheme.

Creation, issue, repurchases and redemptions of shares

The constitutive documents of a Collective Investment Scheme shall provide for the creation, cancellation, sale, repurchase and redemption of shares, the valuation of the assets of the collective investment scheme and the calculation of the sale, issue, repurchase and redemption prices of shares.

Books and Records

A CIS manager shall keep its books and records and those of the Collective Investment Scheme in accordance with the law on a continual basis so that at all times records are up-to-date or able to be brought up-to-date within a reasonable time.

A CIS manager shall keep accounting records in such a manner that they are sufficient to show and explain transactions and commitments, whether effected on its own behalf or on behalf of others, and in particular so that these records disclose with accuracy its financial position at any point in time within the previous 7 years.


The board meetings must be held in Mauritius.


The CIS is liable to a tax rate of 15% but this can be reduced upon the application of the Partial Tax Exemption of 80%.

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