Which of the following best describes the relationship of investors in a collective investment fund?

The option that describes the relationship of investors in a collective investment fund accurately is that investors have a proportionate interest. This means that each investor's share in the fund corresponds to the amount of money they have invested relative to the total amount of money in the fund. Investors’ returns, therefore, depend on the performance of the underlying investments relative to their contributions, allowing for an equitable distribution of profits and losses based on proportional ownership.

This structure allows for various investors to pool their resources while maintaining a clear relationship between individual contributions and overall performance, which is a fundamental principle of collective investment vehicles. The management of the fund is typically handled by a professional investment manager rather than by the investors themselves, which differentiates this model from those where individual investors might take turns managing the investments. Additionally, there is no guarantee of fixed returns in collective investment funds, as performance is directly tied to market conditions and investment success rather than predetermined outcomes.