What is an OEIC?
Instead of buying and selling individual investments, 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.
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
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 client's investment is managed by a professional fund manager
- Dealing costs are lower
There are currently three share classes available for investment in the majority of our funds. This allows your client to choose which share class best suits their investment needs.
- Sterling Class A Shares: Carry no entry charge and no exit charge
- Sterling Class X Shares: Carry no entry charge and no exit charge
- Sterling Class R Shares: Carry no entry charge and no exit charge. Please note commission is not payable on this Share Class
There may be other share classes available. Please refer to the relevant Prospectus for further details.
The table below shows M&G OEIC funds' minimum investment limits. There is no upper limit to the amount your client can invest.
|Minimum investment limits
|Minimum lump sum
|Minimum additional lump sum
|Minimum holding amount