collective investment scheme
Definition
A type of investment scheme that involves collecting money from different investors and then combining all the money collected to fund the investment. A collective investment scheme may also be called a mutual fund. Similar to a mutual fund, a collective investment scheme provides almost absolute control of the investment to the company pooling and investing the money.
Use this term in a sentence
“ We had a collective investment scheme and we were ready to start from new and try something new that would help us. ”
“ They thought their best investment strategy would be to have a collective investment scheme and then could invest all that money at once. ”
“ Participating in a type of collective investment scheme, such as a mutual fund, is beneficial to the small individual investor as it offers greater diversification of assets, thus reducing risk. ”
