OEICs - Open-Ended Investment Companies
How OEICs are Valued
Each OEIC has its own investment objective and the fund manager has to invest to achieve this objective. The fund manager will invest the money on behalf of the shareholders.
The value of your investment will vary according to the total value of the fund, which is determined by the investments the fund manager makes with the fund's money. The price of the shares is based on the value of the investments the company has invested in.
Investment Trusts sometimes see their shares trade at a discount to the underlying value of the assets they hold. However, OEICs cannot fall to a discount. They always trade at a true 'net asset value' (NAV).
Taxation
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