OEIC Basics

2007-08-04T23:00:00Z

OEICs were launched in the UK in 1997 and there are approximately 300 currently in place. An OEIC is like a mix between an Investment Trust and a Unit Trust. Similar to an Investment Trust, OEICs raise money from shareholders, and they invest the money in the stock market, in companies of their choosing. However, they differ from Investment Trusts in that they are open-ended, meaning if there is significant demand for the fund the managers will issue more shares. This allows more people to enter a well performing fund.

Other than this difference, they operate exactly like Investment Trusts. OEICs employ a management team to track the performance of the fund and to change the investment portfolio to maximize the rate of return for shareholders. There are many different types of OEICs that focus on particular markets, sectors, geographies and investment strategies.

OEIC's are allowable in an ISA.

If you are considering investing in an OEIC, fill out our short form, and one of SimplyFinance's specialists will put you in touch with an investment advisor who will answer all your questions. In addition, the investment advisor will be able to search the market for the very best OEIC investment opportunity to suit your particular financial goals and needs.

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The Pros and Cons of OEICs

2007-08-05T23:00:00Z

There is a plethora of investment opportunities available to consumers, and there are inherent risks and advantages associated with each individual type of investment. It is crucial that you completely understand what you're putting your money into before you decide to invest.

The pros and cons of OEICs are similar to that of investment trusts (since the two investments are similar except for the fact that investments trusts are closed funds and that they will only sell a set amount of shares).

The main benefits of OEICs are:

OEICs are managed funds so you will be able to leverage the wisdom and expertise of professional financial advisors.
You will be able to diversify your investment since an OEIC invests in multiple companies and financial instruments.
An OEIC is a simple way to build up and grow your savings since you can continue to put money into the fund on a monthly basis.
OEICs are easy ways to invest since you do not have to actively manage your investments by buying/selling individual stocks (the OEIC management team does this for you).
Since an OEIC is open ended there is no risk of the fund "closing" to new investors. This allows you to find the best performing funds to invest in and to continue investing in them as long as you like.

The only possible disadvantage with OEICs is the management fee associated with the fund. Ideally, the additional money you earn due to the fund being actively managed by professional investors should outweigh the management fees. However, like any investment in stocks there is no guarantee that your investment will grow and there is always the risk that you will lose money.

It is important for you to do your research on available OEICs and speak with professional advisors to find the fund that is right for you and fits with your investment strategy.

If you wish to discuss the possibility of investing in an OEIC, fill out our short form, and one of SimplyFinance's investment specialists will put you in touch with an investment advisor who will answer any questions you may have about investing in an OEIC. Once you feel confident that an OEIC is right for you, this same advisor will search the market to find the best OEIC investment opportunity for you based on your particular financial goals and needs.

CLICK HERE TO APPLY FOR OEIC TODAY!

SimplyFinance - OEICS

OEIC Basics

The Pros and Cons of OEICs