{"id":671,"date":"2026-05-13T12:30:02","date_gmt":"2026-05-13T07:00:02","guid":{"rendered":"https:\/\/prodigypro.co.in\/blog\/?p=671"},"modified":"2026-05-13T12:30:05","modified_gmt":"2026-05-13T07:00:05","slug":"what-is-an-open-ended-investment-company","status":"publish","type":"post","link":"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/","title":{"rendered":"What Is an Open Ended Investment Company (OEIC)?"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-1024x576.webp\" alt=\"Open Ended Investment Company\" class=\"wp-image-672\" srcset=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-1024x576.webp 1024w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-300x169.webp 300w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-768x432.webp 768w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-1536x864.webp 1536w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/05\/What-Is-an-Open-Ended-Investment-Company-2048x1152.webp 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Open_Ended_Investment_Company_OEIC\" >Open Ended Investment Company (OEIC)<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#How_Does_The_Open_Ended_Investment_Company_Work\" >How Does The Open Ended Investment Company Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Charges_Required_For_Open_Ended_Investment_Company_Shares\" >Charges Required For Open Ended Investment Company Shares\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Types_Of_OEICs\" >Types Of OEICs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Some_Advantages_of_OEICs\" >Some Advantages of OEICs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Some_Risk_Factors_With_Open-Ended_Investment_Companies\" >Some Risk Factors With Open-Ended Investment Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Taxation_of_Open_Ended_Investment_Company\" >Taxation of Open Ended Investment Company<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Dividend_Tax_Rates_2024-25\" >Dividend Tax Rates (2024-25)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Capital_Gains_Tax_CGT_Rates_2024-25\" >Capital Gains Tax (CGT) Rates (2024-25)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Differences_Between_OEIC_Mutual_Fund\" >Differences Between OEIC &amp; Mutual Fund<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Final_Thoughts\" >Final Thoughts<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#What_is_the_main_tax_benefit_of_OEIC\" >What is the main tax benefit of OEIC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#What_is_a_major_disadvantage_of_OEIC\" >What is a major disadvantage of OEIC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#What_is_the_example_of_OEICs\" >What is the example of OEICs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#How_can_I_differentiate_OEIC_and_ETF\" >How can I differentiate OEIC and ETF?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-an-open-ended-investment-company\/#Which_is_better_OEIC_or_Unit_Trust\" >Which is better: OEIC or Unit Trust?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Open_Ended_Investment_Company_OEIC\"><\/span><strong>Open Ended Investment Company (OEIC)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An OEIC, or open-ended investment company, is just a type of investment fund primarily in the UK, regulated by the UK Financial Conduct Authority (FCA), that pools money from you and other investors to buy different kinds of assets like bonds, stocks, real estate, and others. According to the investors, it&#8217;s similar to mutual funds. However, the basic difference is identified in its setup and work process of OEIC.<\/p>\n\n\n\n<p>OEIC is open-ended in nature. Do you know what \u201copen-ended\u201d means? It means the fund is not fixed in size. OEIC grows when people buy into it, and it starts shrinking when people sell their shares. So, it is pretty flexible because the number of shares keeps changing depending on who buys and sells the funds.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_The_Open_Ended_Investment_Company_Work\"><\/span><strong>How Does The <strong>Open Ended Investment Company<\/strong> Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before you start investing in open-ended investment companies, you must be aware of the work process. We are breaking it down for you in the simplest way.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>When you buy any share in an <strong>Open Ended Investment Company<\/strong>, it represents a part of your entire fund. The best part about OEIC is that you can buy and sell the shares, and the price is directly linked to the NAV (Net Asset Value).\u00a0<\/li>\n\n\n\n<li>Professional fund managers are required when it comes to OEICs. Generally, the funds are managed by professional investment managers because they decide where to invest depending on the goal of the fund. For example, if you need an equity fund, they will invest in stocks, and this is how it continues.<\/li>\n\n\n\n<li>Diversification is one of the biggest advantages and a significant step of <strong>Open Ended Investment Company<\/strong>. Unlike others, people can invest in a wide range of assets to get far better exposure. This diversification nature helps the investors to lower the risk factors because if a single stock doesn&#8217;t work well, the others will maintain a balance.\u00a0<\/li>\n<\/ol>\n\n\n\n<p>We hope knowing the work process of <strong>Open Ended Investment Company<\/strong> will help you to make clear decisions. If you want to start your investment here, you should know the example as well. It is the Vanguard FTSE 100 Index Fund.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Charges_Required_For_Open_Ended_Investment_Company_Shares\"><\/span><strong>Charges Required For <strong>Open Ended Investment Company<\/strong> Shares\u00a0<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of 2021, when an investor buys a new share, the initial charge will vary between 0% and 5%. You can call it a front-end load that lowers the amount of money needed to purchase shares. Aside from this, the annual management charges are around 1% to 1.5% of the value of an investor\u2019s share.&nbsp;<\/p>\n\n\n\n<p>Please note, that an exit charge for selling shares can also be included depending on the percentage of the total value of the sale. However most of the OEICs do not charge any kind of exit fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_Of_OEICs\"><\/span><strong>Types Of OEICs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are two types of OEICs: one is single-priced OEICs, and the other one is dual-priced OEICs.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Single-priced OEICs<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Single-priced OEICs are one of the most common types. Here the investors buy and sell their shares at the same price, which is fully dependent on the NAV at the end of the day.&nbsp;<\/p>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li><strong>Dual-priced OEICs<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Dual-priced OEICs exist but are less expensive when compared to single-priced OEICs. Her,e the investors will get two types of prices. One is a higher \u201cbuying price\u201d when you are purchasing the shares, and the other one is a lower \u201cselling price\u201d when you are selling. That price difference usually covers the fund\u2019s cost.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Advantages_of_OEICs\"><\/span><strong>Some Advantages of OEICs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Among all, we will discuss four basic advantages investors can get from an open-ended investment company.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>With OEICs, people can invest in various assets that reduce risk and maintain the balance.\u00a0<\/li>\n\n\n\n<li>OEIC always discloses the holdings regularly; therefore, the investors easily know where their money is going.\u00a0<\/li>\n\n\n\n<li>With OEIC, you are not the only one who manages the entire money and investment; here, a professional fund manager does it all for you.\u00a0<\/li>\n\n\n\n<li>One of the biggest advantages of <strong>Open Ended Investment Company<\/strong> is liquidity. People can anytime buy and sell their shares, which increases overall flexibility.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Risk_Factors_With_Open-Ended_Investment_Companies\"><\/span><strong>Some Risk Factors With <strong>Open-Ended Investment Companies<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Along with the positive sides, investors have to adjust to the three risk factors that come with <strong>Open Ended Investment Company<\/strong>.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>As the investments are always associated with the share market, your valuation can fall anytime. It is one of the basic risks that every investor needs to adjust.\u00a0<\/li>\n\n\n\n<li>A professional fund manager is required here, so if he makes any poor decisions, it will affect your investment and the performance of the fund.\u00a0<\/li>\n\n\n\n<li>Sometimes OEICs can charge fees that directly affect your returns. So before you invest, make sure you check the OCF (Ongoing Charges Figure), which reveals the total cost of running the fund.\u00a0<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation_of_Open_Ended_Investment_Company\"><\/span><strong>Taxation of <strong>Open Ended Investment Company<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>OEICs are taxed as per UK taxation laws since it is a UK-based investment vehicles.&nbsp;<\/p>\n\n\n\n<p>In the UK, the taxation of dividends and capital gains for individuals depends on their income tax band:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividend_Tax_Rates_2024-25\"><\/span>Dividend Tax Rates (2024-25)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Basic Rate Taxpayers \u2192 8.75%<\/li>\n\n\n\n<li>Higher Rate Taxpayers \u2192 33.75%<\/li>\n\n\n\n<li>Additional Rate Taxpayers \u2192 39.35%<br><\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Gains_Tax_CGT_Rates_2024-25\"><\/span>Capital Gains Tax (CGT) Rates (2024-25)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Basic Rate Taxpayers \u2192 10%<\/li>\n\n\n\n<li>Higher &amp; Additional Rate Taxpayers \u2192 20%<\/li>\n\n\n\n<li>Surcharge for Residential Property Gains \u2192 18% (Basic Rate) \/ 24% (Higher Rate)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Differences_Between_OEIC_Mutual_Fund\"><\/span><strong>Differences Between OEIC &amp; Mutual Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are some common differences, check quickly,&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Features<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Open Ended Investment Company<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Mutual Funds<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Managements<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Managed by a board of directors.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Managed by fund managers under an Asset Management Company (AMC).<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Ownership<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Investors own shares.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Investors own units.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Pricing&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">&nbsp;NAV per share&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">NAV Per unit<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Legal Status\/Management&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Managed like a corporation, often with a single pricing or dual pricing.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Managed by AMC and regulated by the SEBI&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Dividends&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Can pay dividends and reinvest income.&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">It can also pay dividends and reinvest income as well.&nbsp;<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Transactions<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">May have a bid price and an offer price&nbsp;<\/td><td class=\"has-text-align-center\" data-align=\"center\">May have exit loads or fund management expenses&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Also, Check &#8211; <a href=\"https:\/\/prodigypro.co.in\/blog\/unfreeze-a-demat-account\/\">How to Unfreeze a Demat Account?<\/a><\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><strong>Final Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Investing in <strong>Open Ended Investment Company<\/strong> is a very good option for you if you are new in the share market industry. It is great if you want to pool money with others and give the power to the professionals to handle it. Moreover, OEICs give you full flexibility to buy and sell the shares at any time you want, along with a diversified portfolio. So, just keep your eyes on the risk factors and the fluctuations in prices and invest your money accordingly.<\/p>\n\n\n\n<p>Please share your thoughts on this post by leaving a reply in the comments section. Contact us via phone,<a href=\"http:\/\/wa.me\/917347700888\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0WhatsApp<\/a>, or email to learn more about mutual funds, or visit our website,<a class=\"\" href=\"https:\/\/prodigypro.co.in\/\">\u00a0Prodigy Pro<\/a>. Alternatively, you can download the<a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.bfc_mf.prodigy_app&amp;pcampaignid=web_share\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0Prodigy Pro<\/a>\u00a0app to start investing today!<\/p>\n\n\n<div ><style>#sp-ea-670 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-670.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-670.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #ffffff;}#sp-ea-670.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-670.sp-easy-accordion>.sp-ea-single {background: #7c8cff;}#sp-ea-670.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}<\/style><div id=\"sp_easy_accordion-1778652172\"><div id=\"sp-ea-670\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"\" data-scroll-active-item=\"\" data-offset-to-scroll=\"0\"><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_the_main_tax_benefit_of_OEIC\"><\/span><a class=\"collapsed\" id=\"ea-header-6700\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6700\" aria-controls=\"collapse6700\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is the main tax benefit of OEIC?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse6700\" data-parent=\"#sp-ea-670\" role=\"region\" aria-labelledby=\"ea-header-6700\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The ultimate tax benefit of OEIC is that no CGT (Capital Gains Tax) is payable on the gain made by investments.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_a_major_disadvantage_of_OEIC\"><\/span><a class=\"collapsed\" id=\"ea-header-6701\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6701\" aria-controls=\"collapse6701\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is a major disadvantage of OEIC? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6701\" data-parent=\"#sp-ea-670\" role=\"region\" aria-labelledby=\"ea-header-6701\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The major disadvantage of OEIC is the value can be decreased at any time.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"What_is_the_example_of_OEICs\"><\/span><a class=\"collapsed\" id=\"ea-header-6702\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6702\" aria-controls=\"collapse6702\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the example of OEICs?<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6702\" data-parent=\"#sp-ea-670\" role=\"region\" aria-labelledby=\"ea-header-6702\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Vanguard is one example of an open-ended management company.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"How_can_I_differentiate_OEIC_and_ETF\"><\/span><a class=\"collapsed\" id=\"ea-header-6703\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6703\" aria-controls=\"collapse6703\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> How can I differentiate OEIC and ETF? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6703\" data-parent=\"#sp-ea-670\" role=\"region\" aria-labelledby=\"ea-header-6703\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Based on NAV, OEICs are dealt with by the managers regularly, but ETFs are directly bought on the stock exchange at any time in the day.\u00a0<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><span class=\"ez-toc-section\" id=\"Which_is_better_OEIC_or_Unit_Trust\"><\/span><a class=\"collapsed\" id=\"ea-header-6704\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse6704\" aria-controls=\"collapse6704\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> Which is better: OEIC or Unit Trust? <\/a><span class=\"ez-toc-section-end\"><\/span><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse6704\" data-parent=\"#sp-ea-670\" role=\"region\" aria-labelledby=\"ea-header-6704\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">OEIC is always more stable for investment compared to unit trusts.<\/span><\/p><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n<p>Disclaimer \u2013 This article is for educational purposes only and does not intend to substitute expert guidance. Mutual fund investments are subject to market risks. Please read the scheme-related document carefully before investing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Open Ended Investment Company (OEIC) An OEIC, or open-ended investment company, is just a type of investment fund primarily in the UK, regulated by the UK Financial..<\/p>\n","protected":false},"author":1,"featured_media":672,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[1036,92,1035,381,101,191,1031,1034,1033,1032,1037,261],"class_list":["post-671","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-diversified-investing","tag-financial-planning","tag-investment-funds","tag-investment-guide","tag-long-term-investing-2","tag-mutual-funds","tag-oeic","tag-oeic-investment","tag-oeic-meaning","tag-open-ended-investment-company","tag-stock-market-investment","tag-wealth-management"],"_links":{"self":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/comments?post=671"}],"version-history":[{"count":1,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/671\/revisions"}],"predecessor-version":[{"id":673,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/671\/revisions\/673"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media\/672"}],"wp:attachment":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media?parent=671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/categories?post=671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/tags?post=671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}