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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The sum of a set of numbers added together and then divided by the total amount of numbers in that set.
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Accounting standards

The rules a company follows when preparing financial statements.
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Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.
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Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.
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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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Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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Costs and Charges

The money you pay when investing.
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Clean price

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