Collective investment scheme

Collective investment scheme's are the investment of money with a group to gain some kind of inherent advantage. These advantages may include the higher class professional investment managers, that may be able to make higher returns on the invested money, lower transaction costs, since the all of the group invests in one package, there is no need to pay separate costs on transactions for each individual, and the invested money may be more diverse, possibly reducing the risk factor.

Some other collective investment scheme names that are often used:

• Mutual funds
• Investment funds
• Managed funds
• Or just simply - funds

The different types of collective schemes:

• Exchange-traded funds
• Real estate investment funds
• Sovereign investment funds

Schemes that are recognized individually in different countries:

United States:

• Mutual funds
• Closed-end funds
• Unit investment funds

United Kingdom:

• Investment trusts
• Tax transparent funds
• Unit trusts

Europe

• SICAVs
• UCITS

And some other types with less significance.