Unit trusts and OEICs

Unit trusts and OEICs (Open Ended Investment Companies, also known as ‘oiks’), are investment funds, which provide an easy opportunity to access the world’s stock markets.  

Funds are often called collectives, mutual funds or investment funds and provide a popular route for investment. To the average investor there is little difference between unit trusts and OEICs. Basically all funds have an investment objective and a manager who invests the money in accordance with the objective.

A unit trust is a fund set up under a trust deed, whereas an OEIC is an investment company with variable capital. As with unit trusts – where the fund assets are held by a trustee – so OEICs assets have to be held by a nominated depository.