OEICs
Open-Ended Investment Companies (OEICs) are stock market-quoted collective investment schemes. Like investment trusts and unit trusts they invest in a variety of assets to generate a return for investors. They share certain similarities with both investment trusts and unit trusts but there are also key differences.
What are the benefits of investing in an OEIC?
Like unit trusts, OEICs provide a mechanism of investing in a broad selection of shares, thus aiming to reduce the risks of investing in individual shares. Therefore, you have an opportunity to share in the growth potential of stock market investment. However, do remember that your capital is not secured and your income is not guaranteed.
You have access to your investment when required, although you should regard investing in an OEIC as a medium to long term investment. You may invest by lump sum and / or by regular monthly payments. Through the OEIC structure there is the flexibility to switch easily between the investment funds provided by your OEIC manager.
Do remember that the value of your fund(s) and any income you choose to take depends on the performance of investments in that fund. Where a fund invests overseas, exchange rate changes may also cause the value of your fund to fluctuate.