An OEIC is an investment fund that operates by collecting money from a large number of investors to buy shares, bonds and other investment assets on the group’s behalf. Each investor will own a share of the OEIC, and if it performs well, the value of your investment will rise. Unfortunately, if the fund performs poorly, the value of your investment may fall. The difference between an OEIC and a closed ended investment company is the fact that the number of shares issued in an OEIC rises and falls as investors buy and sell the shares; in a closed end investment fund, the number of shares are fixed. This means that OEICs are much more flexible in terms of purchasing the shares, and the shares cannot trade at a discount or a premium to the underlying net asset value. With closed end funds, you will buy and sell shares at whatever the price the market will bear.