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Open ended investment company |
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Open ended investment company'OEICs' are hybrid investment funds that have some of the features of an investment trust and some of a unit trust.Like investment trusts, OEICs are companies that issue shares on the London Stock Exchange, and which use the money raised from shareholders to invest in other companies. Unlike investment trusts, they are open-ended which means that when demand for the shares rises the manager just issues more shares. With an investment trust, if demand exceeds supply, the response may be a rise in the share price.The price of OEIC shares is determined rather differently. More like a unit trust, in fact, with the key factor being the value of the underlying assets of the fund. But in contrast to unit trusts, there is no bid/offer spread with OEICs, so the price of the shares should be the same whether you are buying or selling.OEICs are popular on the continent but were only launched in the UK in 1997. There are around 300 up and running, with a wide range of investment objectives. You can put an OEIC into an ISA.Similar MatchesInvestment softwareInvestment softwareComputer software that helps investors make investment decisions by identifying situations that meet programmed parameters. Investment philosophyInvestment philosophyThe style and general ideology of investment practiced by an investor. Certain investors favor small-capitalization stocks, while others prefer large blue-chip stocks, for example. Investment incomeInvestment incomeIncome, paid from an investment, such as dividends and interest. Registered investment adviserRegistered investment adviserSEC-registered individual or firm that substantiates completion of education and work experience in the field, and pays an annual membership fee. Passive investment managementPassive investment managementBuying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities. Further SuggestionsReinvestment riskInvestment Company Act of 1940 Temporary investment Foreign Direct Investment investment trust Regulated investment company Association of Unit Trusts and Investment Funds Investment certificate Investment Advisers Act Reinvestment local authority investment Target investment mix Short term investment services real estate investment trust Personal Investment Authority Underinvestment problem Investment history Brown field investment Investment Risk Investment letter Net investment Ethical Investment Research Service Tradepoint Investment Exchange Reinvestment effect Investment club |
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