OEICs (Open Ended Investment Vehicles)
An OEIC stands for an open-ended investment company which works in a very similar way to a unit trust except that an OEIC is legally constituted as a limited company (Plc).
Most OEICS operate an ‘umbrella’ structure allowing numerous sub-funds investing in different types of assets, so the investor can switch easily between different investment funds. Each sub-fund will each have a specific aim, which determines the investment they will make
The OEIC is structured along similar lines to the unit trust however there it has no bid/offer spread. This means buyers and sellers get the same single price.
Unit trusts always have two prices, the lower or bid price is what you get when you sell back to the managers; the higher or offer price is what you have to pay when you buy.
