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Open-ended investment companies are often referred to as the modern day
and flexible equivalent of the unit trust. They combine the elements of unit
trusts and Investment trusts enabling you to pool your investments along
with other investors. This helps to spread the risk and enables you to take
advantage of the skills of a professional managing the fund.
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OEICS are regulated by the FSA. The rules are based on specifically
written company law, whereas unit trusts are based on old trust law.
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OEICS have a single price for buyers and sellers and the charges are
shown separately. A unit trust has a separate buying and selling price
(bid/offer spread).
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The OEIC share price directly reflects the underlying assets of the
portfolio
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An umbrella fund structure, which means that there are different classes
of share. Each sub share fund can be invested in a different area if
required.