Asset Swap

[Candystore]

If asset swaps have lower investment minimums, are less onerous in terms of regulations, allow monthly contributions rather than one-off investments, and are not subject to the Reserve Bank’s foreign investment allowance, why do more people not go this route?

I am a newbie to this so I can definitely use guidance here.

 

[smc]

Asset swap schemes can have many advantages. But you have to look at each scheme specifically, and read the small print. Some schemes can have very high fees, and lock you into less than desirable assets for long period. Do your research.

 

[DapperDanMan]

Asset swap schemes can have many advantages. But you have to look at each scheme specifically, and read the small print.

Aren't we constrained in terms of limited options (fund choice) here in SA?

 

[smc]

Aren't we constrained in terms of limited options (fund choice) here in SA?

Yes, that why I said "less than desirable assets"

 

[smc]

I should add, for the vast majority of people, the whole investment allowance thing isn't an issue. Very few people actually want to take more than R11 million (1 million without even asking plus 10 if you ask) offshore per year. So mostly this is for people that can afford to pay for professional advice anyway.

 

[dlevine]

Funds always have to ultimately be repatriated to SA. So cant be help offshore indefinitely. Not eliminating SA risk.