OEICs
OEICs at a glance
An Open Ended Investment Company (OEIC) is a straightforward, flexible way to invest in global stock markets. They’re a fairly new form of collective investment scheme, first introduced in 1997 to give investors an alternative to the more traditional unit trusts.
An OEIC is a company in its own right, so when you invest you’re actually buying shares in the company itself. The value of its shares relates directly to the value of all the underlying assets the OEIC holds, which is then divided by the number of shares in issue. The transparency of this single pricing structure is probably one of the main reasons behind OEICs’ appeal. As they’re open-ended, the fund grows or shrinks depending on the amount of investors wishing to buy and sell shares.
Gaining a foothold in the stock market
By investing in an OEIC, you’re accessing the growth potential of a vast range of companies. And by not limiting yourself to the shares of any one particular firm, you’re taking steps to reduce the overall risk of stock market investment.
OEICs are also renowned for their flexibility. Their ‘umbrella’ structure, holding lots of different sub-funds specialising in distinct regions and asset classes, gives you the freedom to switch easily between the various funds in order to meet your investment objectives.
Finally, there’s the attraction of being able to choose the payment method that suits you best – whether that’s lump sum or regular monthly payments.
Get the details you need on our wide range of OEIC funds
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