A Collective Investment Trust (CIT) is a pooled investment vehicle that is maintained by a bank or trust company for the collective investment of certain qualified retirement plans only. CITs cannot be publicly marketed or sold. CITs are exempt from registration under the federal securities laws and exempt from the regulatory requirements on mutual funds under the Investment Company Act of 1940; however, they are subject to federal and state regulation under the banking laws, the Employee Retirement Income Security Act of 1974, the Internal Revenue Code, and certain securities laws. A mutual fund is a publicly traded pooled investment fund that are offered through registered investment companies overseen by the US Securities and Exchange Commission. A mutual fund is a pooled collection of assets that invests in stocks, bonds, and other investments and is regulated by the U.S. Securities and Exchange Commission.
CITs are not subject to the regulatory, operational, reporting, and disclosure requirements of mutual funds. Administration, distribution, and marketing cost generally lower than those for mutual funds as well.
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