Guide to Open-ended Investment Company funds

Open-ended Investment Company (OEIC) funds give you the opportunity to enjoy the power of big institutional investors by pooling your money together – usually for a number of years. You can invest in an OEIC fund directly, or via a Stocks & Shares Individual Savings Account (ISA). Certain pension products also allow you to invest in an OEIC fund, for example via a Self-invested personal pension (SIPP). 

What does investing in an OEIC fund involve?

Once your money goes into the pooled fund, a fund manager then invests this across a number of different assets, such as fixed interest, shares and property. Fund managers can also invest in a single asset (not always a combination), or a fund of funds as well. They will make regular adjustments depending on the performance of the individual assets, market conditions and the fund's objectives to try to achieve capital growth and/or income. Although OEICs are considered a medium- to long-term investment option – usually between five to 10 years – you could access your money if you needed to.

However, your returns will depend on how the assets perform and how long you hold the investment. The value can go down as well as up so you might not get back the amount you put in, especially if you take your money out too early.

Enjoy the power of big institutional investors by pooling your money together.

OEICs are just one type of investment available to you.

We're not recommending one option over another or providing advice. If you're unsure of whether this type of investment is suitable for you please seek financial advice.

In addition, tax rules can change and the impact of taxation (and any tax relief) depends on your circumstances.

Share the article

More information

All Investment Articles

Our investment guides aim to help you understand some of the different ways you can invest your money.

Market update and investment risks

An overview of the economic environment.

Need help? Have questions?

If you're looking for further information or want to chat about your product options, we can help.

Contact us