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Pool your risk in a collective fund

1 September 2007

Collective funds cover a broad spectrum of investment types: collective funds such as unit trusts, open-ended investment companies (OEICs) and exchange traded funds (ETFs) or closed-end funds, predominantly investment trusts and investment companies.

Before your eyes glaze over, it’s important that you grasp the advantages that ‘collectives’ can offer you:

  • You can ‘pool’ your investment and any risk with thousands of other investors in a collective fund
  • You can invest in a wide range of investments under one manager
  • You can spread your risks far more easily and cost-effectively
  • You can invest in different asset classes
  • You can invest in specific geographic areas, industry sectors or ‘themes’
  • Management costs may be, although are not necessarily, lower than buying individual shares through a stockbroker

Where next?

If you still want to know more, here are some links you might find useful:

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To provide you with the fullest range of information and opinion, we draw from a wide range of sources and so the views expressed here do not necessarily reflect those of NS&I and should not be taken as financial advice.