Definition (Article 3.1.1.2.1. Decree 2555 of 2010)

A collective investment fund (FIC) is an investment vehicle that allows a plural number of investors to pool their resources to invest in a diversified portfolio of assets, allowing them to obtain collective economic results.

Companies that can manage collective investment funds (Article 3.1.1.1.1. Decree 2555 of 2010)

• Stock Brokerage Companies
• Trust Companies
• Investment Management Companies

Types of collective investment funds

Open Funds (Article 3.1.1.2.3. Decree 2555 of 2010)

In open-ended funds, the collective investment fund managing society is obliged to redeem the shares at the investor's request, at any time during the term of the fund. 

Closed-end funds (Article 3.1.1.2.4. Decree 2555 of 2010)

In closed-end funds, the collective investment fund managing society is only obliged to redeem investors' shares at the end of the fund's term. In these funds, the minimum redemption period may not be less than 30 days.

Collective investment fund Families (Article 3.1.1.2.5. Decree 2555 of 2010)

Management companies can group several funds under the same structure, known as a family of funds, following these guidelines:

The creation of a family of funds and the first fund within it require authorization from the Financial Superintendency of Colombia (SFC). Additional funds in the family do not need new authorization, but must be reported to the SFC.

FICs can be constituted as families if they meet the following conditions:

• That they make all their investments in bonds and/or shares registered in the National Registry of Securities and Issuers (RNVE) or listed in foreign quotation systems, without leveraged operations. The SFC may include other specific values. 
• That they are stock market funds that replicate or follow market indices recognized by the SFC, provided that there are no leveraged operations.
• That they are real estate funds, in which the SFC determines the destination of the properties and the real estate projects in which they must invest  

A fund family cannot include other fund families and the assets of each fund in a family must be independent and separate estates from the other funds in the same family.