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In detail
How long should I keep my money in an OEIC?
OEICs may be suitable for you if you are prepared to put money aside for at least 5 to 10 years and are prepared to accept a degree of risk.
What do OEICs invest my money in?
An OEIC is a collection of ‘sub-funds’ (referred to as "funds" here) each with different investment aims. So one fund could specialise in corporate bonds, say, or in one particular country. Open Ended simply means that the fund can get larger or smaller, depending on the number of investors who wish to buy or sell shares.
How does an OEIC work?
When you invest in a Scottish Widows OEIC fund, you will be allocated a number of shares. You choose either to make a single payment or monthly payments. If you invest by single payment, you can choose either Income shares, where available, or Accumulation shares which only aim for growth. If you decide to invest monthly, only Accumulation shares are available.
What makes OEICs flexible?
Investing in an OEIC fund means you can choose to aim for income from your investment, or capital growth or a combination of both. If your needs change, you can change the funds and shares you’re invested in.
If you want to help protect your investment from tax, you can also choose to invest in most of our OEIC funds through an ISA.
The value of your OEIC, and any income from it, is not guaranteed and can go up and down depending on performance (and currency exchange rate changes where a fund invests overseas). You may not get back the original amount you invested. The benefits of the tax advantages depend on your personal circumstances. Tax rules can change. Please note, ISA managers cannot reclaim the 10% tax credit on UK equity dividends.
How much do I need to invest?
You can invest in most of our OEIC funds with a single payment of £1,000 or more. Or you can choose to make monthly payments, starting from £50 a month.
Have we answered all your questions?
If you have more questions about ISAs, our FAQs may well answer them. If not, please contact us.
