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

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Fixed Income

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

Hedge Fund

Investment funds that are often associated with riskier and shorter-term trading strategies.

Withholding Tax

A tax deduction made at the source of the payment.

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.

Beta

Learn what Beta stands for in finance.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Yield

Income from an investment as a percentage of its current price.

Yield to maturity

What is yield to maturity and why is it useful?

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