Open ended investment companies (OEIC)
Open ended investment companies (OEIC’s) are collective investment vehicles operated in the form of a company. Funds are pooled together to invest in other companies on the stock market.
Typically, open ended investment companies invest in a range of assets and shares and act as a more flexible version of a unit trust. Investors are free to switch their funds to a variety of sub-funds as the investment environment changes.
The ‘open ended’ element means that they are capable op expanding or shrinking depending on demand. OEIC’s do not provide guaranteed returns and you can lose money as well as gain. The market for OEIC’s has expanded quickly and management fees and the terms and conditions of individual products will vary so you need to research and shop around carefully to choose the best product for you.
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