An open-ended investment company (OEIC) effectively retains a company structure and your investment will hold shares within it. The majority of OEICs will feature a single price for which shares within the fund can be either purchased or sold. Although, some OEICs may be dual priced. This simply means that they will have varied buying and selling prices.
As the name denotes, the ‘open ended’ nature of this investment vehicle means that the fund can get bigger or smaller depending on the number of investors who desire to purchase or sell shares. There is also the affinity to create a single ‘umbrella’ OEIC which may contain a variety of funds within specialist areas. When this happens, it is commonly known as a ‘sub fund’ as investors money can be spread across a variety of unique areas.