Glossary · UK
What is OEIC (Open-Ended Investment Company)?
A pooled UK investment fund structured as a company that issues shares, expanding or contracting as investors buy in or sell out.
Full Definition
An OEIC, or Open-Ended Investment Company, is a type of UK collective investment fund. Investors' money is pooled and managed by a fund manager who invests across assets such as shares, bonds or property. Being open-ended, the fund creates new shares when investors buy and cancels them when investors sell, so its size grows and shrinks with demand. OEICs are priced once a day using a single price based on the net asset value, which is simpler than the older buy/sell spread used by unit trusts; in practice the two structures are very similar. OEICs are commonly held inside a Stocks and Shares ISA - with a GBP 20,000 allowance in 2026/27 - or a pension to shelter returns from tax. Outside a wrapper, gains may be liable to Capital Gains Tax and distributions to Income or Dividend Tax. OEICs matter because they give ordinary investors diversified, professionally managed exposure at relatively low cost.