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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

Withholding Tax

A tax deduction made at the source of the payment.

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

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LSE

London Stock Exchange, which was founded in 1571 and now has a market cap of almost $5 trillion.

NYSE

The world's largest stock exchange. Wall St HQ.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).

Beta

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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.

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