Working with third-party companies, we offer Collective Investments.
These consist of three product types: General Investment Account (GIA) / Unit Trust, Open Ended Investment Company (OEIC), and stocks and shares ISAs.
The aim of a Collective Investment is to produce medium to long-term growth.
General Investment Accounts (GIAs) / Unit Trusts
With a GIA / Unit Trust, a fund manager buys a number of bonds or shares on behalf of the fund. Investors looking to invest in the fund will buy unit(s) of this fund. Each unit represents a small but equal part of the fund.
Open Ended Investment Company (OEICs)
An OEIC is similar to a GIA / Unit Trust but the OEIC is set up as a company, so the investor buys shares in the company instead of units (as with a GIA / Unit Trust). The fund manager pools all the investors’ money together and manages it for them the same way as a Unit Trust.
Stocks and shares ISA
A stocks and shares ISA is a GIA / Unit Trust or OEIC placed in a ‘wrapper’ that gives you tax advantages. A stocks and shares ISA has no further tax to pay on any dividends/interest received and is also free from Capital Gains Tax (CGT), which may be of more interest to the wealthier investor who may have used up their annual CGT allowance.
Options: If you make a Collective Investment through Nationwide, you can:
- Set up and amend regular premiums into your investment (minimum is £20 a month, no maximum)
- Depending on the type of fund, you can take income
- Top up your investment
- Switch your investment to a different underlying fund
- Transfer all or part of your GIA/Unit Trust/OEIC to an ISA for tax efficiency purposes
- Withdraw your capital at any time.
Find out more about stocks and shares ISAs