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.

More terms

Margin call

Learn what a margin call stands for in financial terms.
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Oligopoly

A situation in which a market or industry is controlled by a small group of companies.
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Diversification

An investment strategy in which money is put into a variety assets.
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After-hours trading

Trading outside of a stock exchange's opening hours.
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Wall Street

A street in New York that became a figure of speech for the financial markets of the US.
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Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
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Fundamentals

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

The world's largest stock exchange. Wall St HQ.
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Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.
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Accounts include
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Benefits include
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Accounts include
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Benefits include
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  • 3% AER on up to £2k uninvested cash

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Accounts include
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  • FX fee of 0.39% on non-GBP trades

  • 5% AER on up to £3k uninvested cash

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