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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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Net asset value

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An investment strategy in which money is put into a variety assets.

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A debt instrument issued by the UK government with a maturity of less than one year.

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Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.

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