Collective investment scheme

A collective investment scheme is a way of pooling together money from lots of different people so that it can be used to buy things like shares or bonds. It’s like a big saving plan where lots of people put their money together and the investment company uses the money to buy things like stocks or bonds on the stock market. The company will look at the different stocks and bonds available and decide how to use the money that has been pooled together in the best way so that it can make money. The people who pooled their money together will get a share of the money that is made.