How are funds classified by what they invest in?

The FSCMA divides collective investment vehicles by investment target into securities, real estate, special assets, mixed assets and short-term financial (MMF) vehicles, and a 2025 amendment to the Act added the business development collective investment vehicle (BDC), which invests mainly in venture and innovative companies.

Securities, real estate and special asset funds must invest more than the proportion of fund assets set by law (e.g., 50% for securities funds) in the relevant assets. Mixed asset funds can be managed without such ratio limits.