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

Net Asset Value (NAV)

Investment Return

Money weighted rate of return

Balance sheet

Collective investment scheme

Xetra

SPAC

Withholding Tax

Yield to maturity

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A great way to try Freetrade before transferring your ISA or pension
Unlimited commission-free trades. Other charges may apply.
Trade USD and EUR stocks at the exchange rate + 0.99% FX fee
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Fractional US shares
Access to mobile app and web platform

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General Investment Account
Stocks and shares ISA

Everything in Basic and:

Access to 6,200+ global stocks and ETFs, including gilts
A lower FX fee of 0.59% on non-GBP trades
3% AER on up to £2,000 uninvested cash
Early market access with pre-market trading
Automated order types, including recurring orders
More stats and analysis, including analyst ratings and EPS estimates

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Personal pension

Everything in Standard and:

A lower FX fee of 0.39% on non-GBP trades
Priority customer service
5% AER on up to £3,000 uninvested cash
Free, same day withdrawals

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