Collective Investment Schemes

What are Collective Investment Schemes?

A collective investment scheme is a way of investing money with others to participate in a wider range of investments than feasible for most individual investors, and to share the costs and benefits of doing so. The investment funds may typically invest into gilts, bonds and equities depending on the type of scheme and the remit of the fund manager.

Collective investment schemes are often referred to as mutual funds, investment funds, managed funds, or simply funds.

The Benefits of Collective Investments

Investors in collective investments can reduce the risk of investing by spreading the risk of their investment as the fund manager will be able to purchase a far greater number of investments than the individual investor. In this way, the effect on the collective investment fund caused by one particular investment performing badly is low, as it forms only one small part of a much larger investment portfolio.
Collective investments can be held directly or in a number of different tax wrappers, such as ISAs, pensions and offshore bonds.

For more information regarding Collective Investment Schemes please contact us on 01633 415 340 or contact us here
Please note that initial investment planning consultations are free of charge and at no obligation.

The above information does not constitute financial advice from Bartholomew Hawkins Ltd or any of its representatives. Investment performance can go down as well as up. Past performance is no guarantee to future performance. Your home may be at risk if you do not keep up the repayments for any loan secured against it. All information is based upon our interpretation of current legislation and taxation which can change in the future.