A collective investment scheme is an investment whereby a group of investors pool their money into a fund such as a unit trust or investment company. In many jurisdictions it is standard practice to use a unit trust structure for the collective investment vehicle. Investors in the scheme are issued with units in the fund, and the money in the fund is invested by a fund manager or a 'lead fund manager' who will seek to generate optimal results for the unit holders based on the objectives, policies and regulations of the fund.
Synonyms: Fund, Managed fund, Collective investment vehicle, Investment company, Investment vehicle
If you have any questions, or disagree with the definition, or if you have anything to add then please do add your comments in the box below.