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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

Volatility

A measure of how much the prices of an asset or index vary over time.

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.

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.

Fundamentals

The data or information that is likely to impact a company's stock price.

Annualised Rate of Return

The average annual return an investor sees over a set period of time.

Year to Date (YTD)

A period of time that starts with the first day of the current calendar year and ends with today.

Alpha

The percentage by which an investor outperforms a relevant benchmark.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

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