Collective Investment Scheme
Definition
What is Collective Investment Scheme?
A regulated arrangement that pools investors' money for investmentAn asset or commitment of money made with the expectation of future income, growth, or both. according to a common objective.
Example in practice
How This Looks in Practice
A mutual fundA pooled investment vehicle that combines money from many investors into one professionally managed portfolio. combines many subscriptions and issues units representing each investorA person or organisation that commits capital with the expectation of a financial return.'s share.
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Related Terms
Open-Ended Fund
A fund that can create or cancel units as investors subscribe and redeem.
Fund Structure & RegulationClosed-Ended Fund
A fund with a relatively fixed number of units that investors usually trade with one another.
Fund Structure & RegulationSecurities Regulator
A public authority responsible for regulating a securities market.
Portfolio MetricsAsset Allocation
The percentage of a portfolio invested across asset classes such as cash, bonds, shares, and property.