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

Unit Trusts

A collective investment scheme the investors pay money into in exchange for units. The money is invested in a diversified portfolio of assets.

Collective investment scheme

Learn what's a collective investment scheme

Running yield

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

Dividends

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

Real Estate Investment Trust (REIT)

An investment trust specialised in investing in commercial property such as parking garages or GP offices.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.

Fundamentals

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

Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.

What’s a collective investment scheme?