How can withdrawals from collective investment funds be made?

Withdrawals from collective investment funds can be made in cash or ratably in kind. This means that investors have the option to receive their withdrawals either in cash or in the form of the underlying securities held by the fund. The term "ratably" indicates that if the withdrawal is in kind, it will be proportional or based on the investor's share of the fund, ensuring that the withdrawal reflects the investor's ownership stake.

This flexibility is important as it allows investors to choose between immediate liquidity through cash withdrawals or maintaining exposure to the investments by taking a portion of the assets directly. This feature can be particularly beneficial in managing tax implications or adjusting an investment portfolio while still retaining some level of investment in the fund's underlying assets.