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.Similar to an Investment Trust, OEICs raise money from shareholders, and they invest the money in the stock market, in companies of their choosing.
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. An ISA is a tax-favoured savings account introduced on 6th April 1999. The Treasury has confirmed that ISAs will remain in tact until at least 2010 and should therefore be considered a valuable investment option. ISAs replaced PEPs and TESSAs. ISAs are not considered an an investment. They are a tax-free tool that allows you to shelter investments.
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.
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.
No comments:
Post a Comment