Saturday, December 25, 2010

Collective Investment Scheme

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
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