You may want to research "Investment Clubs". There is a national orgaization which you can Google to find website, that will send you a planning and organizing package. You will also need to register with them.

Firstly, where is the 'investment' ??

It's only an investment if the investors have a reasonable likely hood of getting back more than they invested.

And, that has to come from an outside source - paying people back with money provided by new investors is a 'Pyramid scheme' and highly illegal.

Even if you have a practical scheme, you still need a licence to handle or trade with other peoples money.

Google PONZI scheme. highly illegal in the UK. It's not fun-- people have gone to Prison for it.

UK

So the basic outline is that a group of people can subscribe to my "fund" and put in say a 100 pounds a month. I know that its not a hedge fund or mutal fund as you need to be an accredited investor to invest in those. So is there some kind of name for this type of fun? is it even legal? how would i go about setting it up?