Frequently Asked Questions – UK OEICs
OEICs
What is an OEIC?
OEIC stands for Open Ended Investment Company. An OEIC is a pooled investment, which is broadly similar to a unit trust.
What are the benefits of investing in OEICs as opposed to buying shares in single companies?
One of the main advantages of OEICs is that each sub fund can offer different classes of shares (each with different subscription requirements and charges) to suit a range of your investment needs.
As the sub funds invest in a number of different companies the risks associated with investing in individual stocks and shares are reduced. Also, the more companies the fund invests in, the less each company's individual performance affects the fund.
OEICs are single priced (i.e. they have no bid/offer spread) making it simpler to value your investment.
What is the recommended timeframe for an OEIC investment?
An OEIC should be considered as a medium to long term investment and at least three to five years is usually recommended. However, there is no minimum period that you must hold your investment.
Aberdeen offers 2 fund ranges to investors in the UK. Find out how to invest in the Aberdeen OEIC Range and how to invest in Aberdeen Global.