OEICs

Open-Ended Investment Companies (OEICs) enable investors to invest in financial markets through a managed fund operated by a professional fund manager.

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

Invest with M&G

Choosing your investment with M&G couldn’t be easier. There are a number of ways to invest in our funds, including directly in an investment fund or through an ISA.

Invest with M&G

Regular savings

Saving regular amounts could help smooth out the peaks and troughs of the stockmarket.

The M&G Savings Plan

What is an OEIC?

Instead of buying and selling individual investments yourself, it can be easier and more cost-effective to invest in the markets through an Open-Ended Investment Company (OEIC).

An OEIC is a collective investment scheme, or managed fund, in which the money of many investors is pooled together to purchase investments in a range of different assets, according to the investment policy of the managed fund.

An OEIC can be set up as a single company or as a company with several sub-funds, known as an umbrella scheme. Each sub-fund within the umbrella scheme has its own investment policy and objective.

What are the benefits?

There are many advantages to investing in an OEIC rather than directly in the stockmarket:

  • diversification offers greater potential for growth and can help to decrease your investment risk
  • your investment is managed by a professional fund manager
  • your dealing costs are lower

Share classes, charges and discounts

Share classes

The majority of our funds offer two share classes for private investors. This means you can choose the best share class for your investment needs.

  • Sterling Class A Shares carry an entry charge and no exit charge. However, M&G have now discounted the entry charge to zero (0%) on all new investments, including switches, in Sterling Class A Shares made by individuals who are not dealing via a financial adviser. Please note that an ongoing charge will apply. The ongoing charge includes direct costs to the fund, such as the annual management charge, custodian charge and administration fee. For property funds, the specific costs of investing in property will also be included. For information on all of our charges, please refer to our Fund Charges page.

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. The fund can invest in assets priced in currencies that differ from the currency in which the fund is valued. Such assets are converted into the fund's currency, therefore, any currency fluctuations will have an impact on the fund's value. We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. The views expressed in this website should not be taken as a recommendation, advice or forecast.

  • Sterling Class X Shares carry no entry charge. Instead, they have a decreasing exit charge that disappears completely after five years.

Certain funds have other share classes available for direct investment (outside The M&G ISA, The M&G Junior ISA and The M&G Savings Plan). This may include Sterling Class I Shares, which have minimum investment limits starting from £500,000 depending on the fund.  For more information on these, download the relevant Prospectus or call our Customer Relations team on 0800 390 390.

Exit charges – Sterling Class X Shares

Withdrawal before the stated anniversary of their purchase Exit charge
First year 4.5%
Second year 4.0%
Third year 3.0%
Fourth year 2.0%
Fifth year 1.0%
After five years 0.0%

Remember to specify the fund(s) and share class in which you wish to invest on your application form. Your application may be rejected if it is only partially completed.

Most funds offer the choice of two share types - income or accumulation.

Income shares entitle the holder to be paid the income attributed to those shares on the payment date. This is usually paid twice a year but can be paid annually, quarterly or monthly depending on the fund.

Accumulation shares don’t pay income. Instead, they automatically reinvest any income accruing to the fund and this is reflected in the share price. If a fund only offers Income shares, any net income can be reinvested to buy more shares.

Please read the Important Information for Investors document for more information on share classes. You’ll need Adobe Acrobat to view this document.

Charges and discounts

How to invest and pay no entry charge - Sterling Class X Shares 

If your chosen M&G fund offers Sterling Class X Shares you can invest with no entry charge. However, these shares have a decreasing exit charge that disappears completely after five years. An ongoing charge will also apply. For full information on charges please see the relevant KIID or refer to our fund charges page. 

How to invest and get a discounted entry charge - Sterling Class A Shares

Sterling Class A Shares carry an entry charge and no exit charge. However, M&G have now discounted the entry charge to zero (0%) on all new investments, including switches, in Sterling Class A Shares made by individuals who are not dealing via a financial adviser. Please note that an ongoing charge will apply. The ongoing charge includes direct costs to the fund, such as the annual management charge, custodian charge and administration fee. For property funds, the specific costs of investing in property will also be included. For information on all of our charges, please refer to our Fund Charges page. 

The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested. Please be aware, your investment may increase or decrease as a result of currency fluctuations.

OEIC investment limits

The table below shows the minimum investment limits for M&G OEIC funds. There is no upper limit to the amount you can invest.

Minimum investment limits for OEIC funds
Minimum lump sum £500
Minimum additional lump sum £100

Invest now

Before investing, please make sure you have read the Key Investor Information Documents (KIIDs) for the fund(s) in which you wish to invest. Here you will find more information about your investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration.

You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions.

You’ll need Adobe Acrobat to view both these documents. 

We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. The views expressed in this website should not be taken as a recommendation, advice or forecast.

Once you’ve chosen the fund(s) in which you’d like to invest and have read the relevant KIID and the Important Information for Investors document, you can:

Need further information?