Open-ended Investment Company funds

In addition to investing using your annual  ISA allowance, Open-ended Investment Company (OEIC) funds could be a good way to help you build up your own portfolio of investments. OEICs  pool  your money with that of other investors and allow a fund manager to access many different types of assets which may be difficult for you to invest in on your own.

Benefits
  • Investing in OEIC funds could give you the potential for long term capital growth, income or a mixture of both.
  • Choose to invest a minimum lump sum of £500 or from as little as £50 per month.
  • Invest in a range of 10 OEIC funds, covering a range of levels of risk and potential returns.
  • Switch funds whenever you need to without charge giving you control over your investments.
  • OEICs are a medium to long term investment but, if required, you can access your money if you need to (subject to a minimum withdrawal of £250).
Risks and considerations
  • The value of an investment and any income from them can go down as well as up and you may not get back the amount you put in.
  • You need to be comfortable making investment decisions and balancing the level of risk you are willing to take with the potential for growth.
  • 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 that 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 Capita Financial Managers Ltd (CFM) 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 remember that the value of your investment and any income from it can go down as well as up and so there is the potential that you may not get back the amount you put in.

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.    

What are the 10 OEIC funds?

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 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 as little as £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 is payable on gains made by investments held within the fund. Capital Gains Tax may be payable when you sell your all or part of your investment however, and you're required to detail this in your self-assessment tax return.
• From 6 April 2016, income received in the way of dividends may be sheltered by a new dividend tax allowance of £5,000 per year.
• From 6 April 2016, payments which are treated as interest payments received within the OEIC, will paid gross and savers will benefit from the Personal Savings Allowance - £1000 of interest for basic rate tax payers and £500 for higher rate taxpayers.

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 an existing customer and looking to make changes to your OEIC investment, please visit our dedicated OEIC Fund Range page in the existing customer Investment section of our website.

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.

Tax rules require careful considerations and may not reflect your individual circumstances, so you actual liability may be higher or lower. 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 www.hmrc.gov.uk.

The OEIC funds are operated by Capita Financial Managers Ltd (CFM) who are legally responsible for all servicing and administration of the funds.

Need help? Have questions?

If you're looking for further information or want to chat about your product options, we can help.

Contact us