What is a 'collective investment scheme'? Definition & meaning

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

After-hours trading

Trading outside of a stock exchange's opening hours.

Stock Market

A place where shares of publicly listed companies are traded.

Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.

Venture Capital

A type of financing that investors provide to startups, who sometimes announce getting said financing in TechCrunch, to big fanfare.

Base rate

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SPAC

Find our what a SPAc or special purpose acquisition company is.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Growth stocks

These are stocks in companies that are considered to be “growing”. These companies may be delivering new products and services, or entering new markets.

Float

Listing a company on a stock exchange, or the shares that are genuinely up for grabs once it’s there.

What’s a collective investment scheme?