Saving for the future? Top tips on investing with OEICs

If you’re new to investing OEICs are one way in which you can help build your money, especially if you’re saving to put towards your pension

16:28 25 January 2013

It may be that 2013 looks promising to you when it comes to your finances? Perhaps you hope to save more money than you managed last year? Or maybe you’re planning on investing in order to secure your finances for the future?

So, if you’re looking to create an extra fund pot, or if you’re new to investing and want to secure you finances through stocks and shares, here are a few top tips on OEICs to help you:

•    OEIC stands for Open Ended Investment Company; this refers to buying and selling shares in the fund

•    You have to be willing to enter into a situation where there is the element of risk as buying and selling shares is not predictable.

 

It would be wise to invest an amount of money you are comfortable with or can afford, as you wouldn’t want to jeopardise your finances – especially if you’re saving for retirement

•    The idea is to invest in shares on the stock market in the hope that these will bring you a return profit

•    You may be able to invest in OEICs through certain ISA’s in order to gain a tax-free investment

•    The price of buying an OEIC share is the same price as selling an OEIC share, which is different compared to other investment options, such as Unit Trusts -  where the buy and sell price are not the same

With this in mind, it is also worth knowing that OEICs are a good option for beginners in investment terms. Maybe you’re planning your savings, or looking at ways to help you with your finances during retirement? Investment is one sure way in which many people try to build their monies.