Collective Investments

Collective Investments are arrangements that enable a number of investors to 'pool' their assets together and have them professionally managed by an independent manager.

By investing within a Collective Investment you benefit from the professional management of your funds. A professionally managed fund helps you to spread your risk, reduces dealing costs and administration, and offers more choice.

There are several types of Collective Investment but the main three are ‘Investment Trusts’, ‘Unit Trusts’ and ‘Open-Ended Investment Companies’.

Most Collective Investment funds are actively managed. This simply means that the fund manager researches the market and buys and sells assets to try and provide a good return for investors.

Passively managed funds, on the other hand, such as ‘Tracker’ funds simply aim to track the market in which they are invested. For example, a FTSE100 tracker would aim to replicate the movement of the FTSE100 (the index of the largest 100 UK companies).

Collective Investments may include a collection of shares only, but may also include bonds (loans made by companies), gilts (government loans), cash, property and other more complicated investments.

If you have already made use of your ISA allowance and would like further information on Collective Investments please contact us.


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