What are OEIC and SICAV funds?
Managed funds such as OEICs (Open Ended Investment Companies) and SICAVs (Société d’Investissement à Capital Variable) provide access to global stock and bond markets, potentially helping you achieve your investment aims. Managed funds offer choice, are managed by professionals and provide an easy way for most people to enter the investment market.
How funds work
Managed funds invest in company shares and bonds by pooling money from a large number of investors. In the UK the most popular investment funds are OEICs (which have largely replaced traditional unit trusts), while you can also invest in similar funds, SICAVs (based in continental Europe), for extra choice.
Professional fund managers pick the underlying investments for both fund types and manage them against the investment objective set out by a particular fund. Having your fund managed by an expert means that you can potentially achieve better returns than you could achieve on your own.
Differences between OEIC and SICAV funds
OEIC and SICAV funds work in the same way, except SICAV funds are based offshore for UK investors. Together, our OEIC and SICAV funds offer a comprehensive range of investment options. Our SICAV range for example offers an Africa fund, which is not available in our OEIC fund range.
See our full fund range
Advantages of investing in managed funds
- Wide choice – you can access funds investing in:
- Stocks, bonds or a combination of these and other assets
- Major markets such as the UK, US and Europe
- Emerging markets such as China, Brazil and India
- Specialist areas such as commodities, consumer trends and technology funds.
- Transparency – there is a single price when trading funds, so you always know how much your investment is worth.
- Easy to buy and sell – investment funds are highly liquid, which means you can easily buy and sell them. This can be done through an asset management company such as J.P. Morgan Asset Management.
- Diversification – investors can spread the risk of investing in the financial markets as funds often invest in a large number of securities. Some funds invest in many different types of investment such as stocks, bonds and cash for extra diversification.
- Choice of income or growth – if you want growth from your investment simply choose the “accumulation” option, or for income select income shares that pay out dividends. We also offer a range of specific income or growth funds.
Because all managed funds have slightly different characteristics you might like to know which type of fund may be the most suitable for you.
Suitability
You should, of course, only consider investments that are right for you. If you are in any doubt about the suitability of an investment, please speak to an independent financial adviser - find an IFA at unbiased.co.uk.