Open-Ended Investment Companies (OEICs) and Unit Trusts are seen by many as the most popular investment funds available. Both are a type of collective investment where you invest your money alongside other investors, spreading the risks involved.
When investing in an OEIC you buy shares in the company itself. The company uses the pooled funds from all the investors to buy assets on your behalf, such as stocks and shares, gilts, and property. The investment is ‘open-ended’ as the assets (represented by your shares), can be changed, bought or sold at any time.