General Characteristics

• Often referred to as Funds
• These allow individual investors to participate in a large portfolio of shares with many other investors, who individually may not have been able to purchase the shares they desire
• Individuals purchase a unit or share which represents a percentage of the overall portfolio
• OEICs and Unit trusts are open ended meaning there is no limit on the amount of shares that can be issued
• OEICs and Unit trusts are very similar with the main differences being their underlying structure and how they are priced

There are many different types of fund:

• very general funds, covering most markets and types of security;
• very specific funds that concentrate on a particular market sector or type of security;
• some aim for a high income;
• some look for above average capital growth; and
• the many so-called ‘balanced’ funds may look for a mix of both capital growth and income.