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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

Withholding Tax

A tax deduction made at the source of the payment.

Key Information Document (KID)

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

Gross Margin

The difference between a company's revenue and the cost to produce its goods/services, divided by revenue.

Stock Market

A place where shares of publicly listed companies are traded.

Investment Trust

A company that pools money together from multiple investors and then invests it.

Earnings per share

We look at what earnings per share mean and how to calculate it

Accounting standards

The rules a company follows when preparing financial statements.

S&P 500

Find out what is the definition of the S&P 500 index.

Custodian bank

Learn what a custodian bank is.

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