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

Yield

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

52-week high/low

The highest, or lowest, price a share has traded at in a passing year.

Bull market

We explain what a 'bull market' means

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.

Margin call

Learn what a margin call stands for in financial terms.

Annualised Rate of Return

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

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

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