Open-ended investment company (OEIC)
An open-ended investment company, or OEIC (pronounced 'oik'), is a modern and more flexible version of a unit trust.
An open-ended investment company, or OEIC (pronounced 'oik'), is a modern and more flexible version of a unit trust. It uses the basic structure for collective investments commonly used in Europe and the US. As with unit trusts, the size of the fund is variable - more units or shares can be issued if there is demand for them - and the price of shares or units in the fund is fixed by the value of its underlying assets.
However, instead of having two prices for its shares (one for buying and one for selling), as a traditional unit trust does, an OEIC has one price for both; management fees and commissions are charged separately. This is designed to make it easier for you to see exactly what you are getting. OEICS can be operated as an 'umbrella' structure, which means that, within each, there can be various sub-divisions of funds, each with their own objectives and the ability to invest in different financial products.
This flexible structure makes it cheap and easy for OEICS to keep up with changing consumer demands.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
See Ed Bowsher's video tutorial: Why we like investment trusts.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
MoneyWeek Readers' Choice Awards Winners – 2025
The MoneyWeek Readers' Choice Awards 2025 celebrate the products and services that help you make, keep and spend your money. Here are this year's winners.
-
UK growth: opportunities amid tariff turbulence
Iain McCombie, joint manager of the Baillie Gifford UK Growth Trust, explains how adaptable UK companies in growth-driving sectors can prosper over the long term despite international trade restrictions.