The power is in your hands when it comes to OEICs, as there are so many products and services to choose from. There are OEICs to suit every risk level and the minimum investment is generally quite low. You can choose to pay in £50 per month or a lump sum of £1000 to get started with an OEIC.
These funds are generally flexible too, giving you more control over your money. This can give you extra peace of mind if you want to be able to access your cash in a pinch.
As this is a short-term investment, your money won’t be tied up for many years. These funds are usually invested for five to ten years, which is much shorter than many investments.
With an OEIC, you’re drawing on the experience of the investment company and have strength in numbers with other investors. This can mean that your investments are more successful than those that you would make as an individual.
Your funds are actively managed by the investment partner, which means you don’t have to spend your time doing so. With some investment products, you put in more time and effort to the process, but this isn’t the case for OEICs. You can simply sit back and watch the value of the investment over time.
OEICs are regulated and you can get advice from the Financial Ombudsman if you feel that your funds have been mismanaged. Each of these investment funds has a Depository, which is a board that ensures they act ethically and legally. The parent company that manages the OEIC will also generally be covered by the Financial Conduct Authority, giving you yet more recourse if you wish to make a complaint.