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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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The highest, or lowest, price a share has traded at in a passing year.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

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A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

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