Investments A person would like to save money for various
reasons such as their children's education, going on
holiday or maybe a deposit for a house or car

Unit Trust

A Unit Trust is a vehicle which allows us to invest in a mix of the major asset classes such as equity, property, bonds, cash to create a very diverse investment strategy. Unit Trusts offer you the ability to invest in a mix of the major asset classes – equities (shares), bonds and short term money market instruments.

When you invest in a unit trust you are effectively lumping in your money with other investors and paying a fund manager to invest it wisely according to a specific mandate. Investors can invest much smaller sums of money in a unit trust and achieve a greater level of diversification which is very practical rather than buying shares through a stock broker.

Unit Trusts should generally be viewed as medium-to-long term investments.

What are asset classes?

Asset classes are the areas where your money gets invested. Unit Trust companies invest mainly in 4 types of asset classes. Each asset offers a different amount of risk therefore it potentially offers different returns.

Endowment Policies

These are vehicles that are linked to a minimum term of 5 years. Through endowments one can invest in a diverse range of portfolio’s. Endowment policies, unlike bank accounts, are governed by the long term insurance act. Endowment contracts must have a minimum term of at least 5 years and the investor may have access to their monies twice between 2 years and 5 of the contract.

One of the main differences between an endowment and a bank account investment is the way the growth of these investments is taxed.

With an endowment, individual investors receive their monies tax – free as the life assurer will have paid all tax on their behalf. The tax rate that applies to individuals invested in endowments is 30% in the Individual Policyholder Fund, which is usually less than the 40% marginal rate paid by some investors.

Tax Free Investment

The Tax Free Plan puts you in control of your savingsand encourages you to save while giving you the peace of mind that you can access your money at any time. It is a simple, transparent savings solution that aims to meet your savings needs. All growth in the plan is completely tax free.

Invest monthly or with a lump sum contributions up to R33 000 per annum.

All growth on your plan is tax free

• Transparent fees and charges.
• You choose how you want to invest – with lump sums, regular investments or a combination of both.
• You have full access to your savings from day one – with no penalties.
• You can increase, decrease or stop your regular investments at any time.