The Main Difference Between Saccos and CIS

CIS and SACCO have similarities but their main difference is in their definition and functions. Sacco is an abbreviation for Savings And Credit Co-Operative. Their fundamental goal is to offer saving plans and credit offices. They work in various ways, which is dependent on their plan of action, and Sacco ordinances frequently represent them. They’re generally safe and very easy to understand.

On the other hand, CIS is an acronym for Collective Investment Schemes. They are mutual funds and they operate in a manner such that fund managers gather cash from people or organizations and pool the raised funds together for aggregate investment. The assets are additionally set into investments of two main types; Money Market Instruments or equities.

Money Market Instruments are the place where members put their principal amount in investment in exchange for periodic income with interest. Upon maturity, the cash is deliverable/withdrawable adding up to the principal and interest one may accrue. This investment can also be of low risk.