Encyclopedia of Investment Terminology

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Collective Investment Scheme

A collective investment scheme works as a group investment where multiple people invest in a large variety of investments. A scheme works with working to help with diversifying a portfolio and to reduce commissions. This can be a more expensive type of scheme though. A number of people will need to work with this to get it to work properly. These include a fund manager who makes investment choices, an administrator who handles trades and pricing, a board that protects assets and shareholders who have stakes in this group.

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