Open-ended Investment Company funds

Open-ended Investment Company (OEIC) funds allow you to pool your money with other investors, so that you can access assets that would be difficult to invest in on your own. The fund manager then invests this across a number of different assets, such as fixed interest, shares and property. You can invest in an OEIC fund directly, or via a Stocks & Shares Individual Savings Account (ISA).

Benefits
  • bullet Investing in OEIC funds could give you the potential for long term capital growth, income or a mixture of both.
  • bullet Choose to invest a minimum lump sum of £500 or alternatively from £50 per month.
  • bullet Invest in a range of 10 OEIC funds, covering a range of levels of risk and potential returns.
  • bullet Currently able to switch funds free of charge.
  • bullet OEICs are a medium- to-long-term investment but, if required, you can access your money if you need to.
Risks and considerations
  • bullet The value of investments and any income from them can go down as well as up and you may not get back the amount you put in.
  • bullet You need to be comfortable making investment decisions and balancing the level of risk you are willing to take with the potential for growth.
  • bullet If you are unsure of whether this type of investment is suitable for you please seek financial advice as we are unable to give advice to help you make your investment decision.

What is an OEIC?

Your money is pooled with that of other investors and so you could boost your purchasing power. This means you are able to invest in some assets such as shares, fixed interest and property, that, as an individual investor, you could not normally invest in, or you might find expensive to do on your own. OEIC funds are designed to be a medium- to-long-term investment, (so five to 10 years).

The OEIC funds are operated by Link Fund Solutions Limited who are legally responsible for all servicing and administration of the funds.

Choosing your investments

There are 10 funds you can invest in which cover different levels of potential risk and return. You can choose to invest in one or more funds that could suit your need for potential capital growth, balanced with how much risk you are willing to take with your original investment. By creating your own individual combination of funds you can aim to find a mix that you think you're comfortable with and you can switch funds whenever you like with no charges. 

Although each type of asset in which the funds invest in can pose their own risks, many of the funds spread their investments over several assets to try to limit your exposure to the ups and downs of investing solely in one type of asset, for example, stocks and shares.  Therefore, if the value of one sector or type of asset, such as stocks and shares, goes down, there are others, such as bonds, that could potentially provide returns. This is sometimes known as multi-asset investing, or diversification.

Please note that each fund has its own level of risk and potential growth and the charges for each can vary.

To read more about different types of assets and their risk levels, please see the Balancing investment risk and reward page.    

Fund information

Our OEIC funds page has further information about the investment objectives, performance (if available) and the charges for each fund. You should also read, download and save the Key Investor Information Documents for each fund to help you decide which to invest in.

Please note that past performance, where available, is not a guide to future performance and may not be repeated.

As with other investments in stocks and shares your investment and any income from it can go down as well as up and you may not get back the amount you put in. Also, if you take any income or make withdrawals from the fund and this is more than any overall growth achieved, the value of your investment will reduce below the level of the amount of capital you originally invest.

Paying in and taking money out

Once you have decided where to invest, you need to decide how much to invest in each fund. The OEIC is flexible and allows you to start investing from £50 per month. Alternatively, you can initially pay in a lump sum of £500 or more.

If you wish to take money out, you can make free withdrawals of £250 or more anytime but bear in mind that making withdrawals may affect the return you get back on your investment.

To increase your level of investment, you can top up your existing OEIC with a minimum lump sum of £250 or by increasing your monthly payment in multiples of £5. 

Tax benefits and considerations

There are some tax advantages of investing in funds through an OEIC.

  • No Capital Gains Tax (CGT) is payable on gains made by investments held within the fund. CGT may be payable when you sell all or part of your investment however, and you're required to detail this in your self-assessment tax return.
  • Income received in the way of dividends may be sheltered by a dividend tax allowance of £2,000 per year.                                                                                         
  • Payments which are treated as interest payments received within the OEIC, will be paid gross and savers will benefit from the Personal Savings Allowance. So if you’re a basic rate taxpayer you’ll be able to earn up to £1,000 in savings income tax-free. Higher rate taxpayers will be able to earn up to £500 savings income tax-free.

Further information can be found in our investments and taxation article.

Please note that the impact of taxation depends on individual circumstances and is subject to change.

Read more about how the OEIC funds could work for you in our Guide to OEIC funds article or see our investment guides for more information on investing.

If you are looking for the latest fund details, you can see this on the prices and information page which lists all of the OEIC funds.

Before you decide whether this investment product is right for you, you should read, download and save the following documents to help you make the right investment decision.

Key Investor Information Documents  
Prospectus

Are you an existing customer?

If you are looking to make changes to your OEIC investment, please visit our dedicated OEIC Fund Range page for existing customers.

Before you decide whether this investment product is right for you, you should read, download and save the following documents.  If you aren’t comfortable with making a decision or are unsure of the suitability of the funds, please seek financial advice.

Key Investor Information Documents

Once you have downloaded and saved the relevant Key Investor Information documents, there are two ways to apply to invest in one or more of our OEIC funds:

• Call us on 0844 335 8936 Mon - Fri 8:30am to 5:30pm.
• Complete this application form and send this to the address shown on the form.

Important information

We are not recommending one option over another and have not given advice on this investment. If you are unsure of the suitability of this product please seek financial advice.

You might need to pay tax depending on your circumstances and the options you choose. Tax rules can also change in the future. The information above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. For more information please visit gov.uk.

Our OEIC funds are managed by Link Fund Solutions Limited. This took effect on 6 November 2017, following the sale by Capita plc of its Capita Asset Services businesses (CAS) to Link Administration Holdings Ltd (Link Group).

You may therefore notice that some OEIC material now shows the Link name and branding during the changeover to Link. We are currently in the process of updating our material with the changes, so please bear with us. For further information, please read our Q&A document.

Need help? Have questions?

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