Collective investments are funds that allow several investors to pool their money and participate in a wider collection of investments than would be feasible to do so as an individual investor.
These collective investment funds are then professionally managed by an independent funds manager and by investing collectively investors are able to spread the costs and risks of their investments. This is because any poorly performing investment is now offset by the large number of better performing investments within the overall portfolio.
Some of the types of collective investments in the UK include Investment Trusts, Unit Trusts and Open Ended Investment Companies.
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