Inflation
The increase in the prices of goods and services over time, and the process by which money loses its value.
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.