An open-ended investment company (OEIC) is a type of investment fund which invests in stocks and other securities. The investor buys shares in a company which is listed on the London Stock Exchange, and the price of the shares is based largely on the underlying assets of the fund. These funds can be a mixture of different types of investment strategies such as income and growth and can constantly adjust their investment criteria and fund size. These types of funds are called ‘open-ended’ because they can create new shares to meet investor demand. The fund will also cancel shares of investors who exit the fund. The price of the shares can increase and decrease in value, therefore the value of your investment will fall and rise accordingly.
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