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Collective investment scheme

What’s a collective investment scheme?

Learn what's a collective investment scheme

A collective investment scheme is a fancy legal name for any investment fund that involves multiple people pooling their money together and investing in assets.

In the UK, this could include mutual funds, investment trusts or an open-ended investment company.

Collective investment schemes benefit from economies of scale. A larger pool of money invested has the potential to provide greater returns. It can also mean that transactions and other pieces of bureaucracy incur lower costs.

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More terms

Securities

Bonds and stocks.

Stock Market

A place where shares of publicly listed companies are traded.

Compound interest

Understand what compound interest means and how it's calculated

Professional Client

An investor that is able to meet several regulatory criteria.

Beta

Learn what Beta stands for in finance.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

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