What is '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

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A graphical representation of interest rates over time

Money weighted rate of return

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Value Investing

The art of buying shares which trade below their value, according to the analysis of the value investor.

UK Treasury bill

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

Collective investment scheme

Learn what's a collective investment scheme

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.

Yield to maturity

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Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

What’s a collective investment scheme?