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.

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We had a collective investment scheme and we were ready to start from new and try something new that would help us.

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They thought their best investment strategy would be to have a collective investment scheme and then could invest all that money at once.

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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.

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