OEIC (Open-Ended Investment Company)
What is an OEIC?
An OEIC (Open-Ended Investment Company) is a type of fund. You buy units in the fund, and the fund holds investments like shares or bonds. The price is set once a day based on the value of what the fund holds.
How is an OEIC different from an ETF?
An ETF trades on the stock exchange with prices changing throughout the day. An OEIC has one price per day. You buy directly from the fund provider, not on an exchange.
For most people, the difference doesn’t matter much. OEICs are often easier to set up for monthly investing.
How much does an OEIC cost?
OEICs charge a yearly fee called an OCF (Ongoing Charges Figure). The fee depends on the fund. Index-tracking OEICs often charge 0.10% to 0.25%. Actively managed OEICs usually charge more.
Where can you buy an OEIC?
Through an investment platform (a company that holds your investments), inside an ISA, GIA, or SIPP. Most platforms offer a range of OEICs alongside ETFs.
Key points about OEICs
- One price per day, set by the fund
- Easy for regular investing. Most platforms let you set up monthly purchases
- Same job as an ETF, just a different way to buy