Coronation Fund RA

[^^vampire^^]

Hi Guys

Want to start an RA with Coronation, going to put in R4000 a month.
Can anyone suggest which funds would be best for an RA. I'm 27 years old.

Thanks for the help.

 

[R13...]

Top 20
Industrial
Balanced

 

[^^vampire^^]

Top 20
Industrial
Balanced

Not sure how i would weight that to get the 75% 25% 25% ratio

 

[R13...]

The top 20 and industrial are on the high risk side which is fine at your age. Must say the best balanced fund in terms of historical recent performance is the Allan gray.

 

[^^vampire^^]

The top 20 and industrial are on the high risk side which is fine at your age. Must say the best balanced fund in terms of historical recent performance is the Allan gray.

Was thinking:

Balanced Defensive 30%
Balanced Plus 30%
Industrial 20%
Top 20 20%

 

[supersunbird]

If it was my money my allocations would be:

50% - Top 20
12.5% - Global Managed or Global Opportunities Equity
12.5% - Emerging Markets
15% - Property Equity
10% - Bond

Other possibilities I would ponder:
1. 17,5% Property Equity and 7.5% Bond if that would be Regulation 28 compliant when the RA starts. Top 20 and Global Managed has property components, that's why you cant easily go full 25% with Property Equity.

2. The 50% Top 20 could be changed to:
- 40% Top 20, 10% Industrial
- 30% Top 20, 20% Industrial

 

[syntax]

maybe i am lost, but coronation doesnt have top 20 as an option under their RA selections

 

[supersunbird]

maybe i am lost, but coronation doesnt have top 20 as an option under their RA selections

My RA with them begs to differ

 

[R13...]

Yes property is not doing well which also means it is cheap to buy at the moment. Could still keep going down but then it might also turn.

 

[^^vampire^^]

maybe i am lost, but coronation doesnt have top 20 as an option under their RA selections

Their top 20 is available.

 

[^^vampire^^]

Emerging markets?

If it was my money my allocations would be:

50% - Top 20
12.5% - Global Managed or Global Opportunities Equity
12.5% - Emerging Markets
15% - Property Equity
10% - Bond

Other possibilities I would ponder:
1. 17,5% Property Equity and 7.5% Bond if that would be Regulation 28 compliant when the RA starts. Top 20 and Global Managed has property components, that's why you cant easily go full 25% with Property Equity.

2. The 50% Top 20 could be changed to:
- 40% Top 20, 10% Industrial
- 30% Top 20, 20% Industrial

 

[supersunbird]

Emerging markets?

Yes. There are many overlaps with Global Managed (Coca Cola, Colgate Palmolive, Porsche AG, Samsung and others) but more diversification.

http://www.moneyweb.co.za/moneyweb-click-a-unit-trust

 

[znh]

For a RA your investment must be regulation 28 compliant, which means, < 75% equity and of which <25% property, also < 25% offshore.

Unless you do extensive research on the markets, just pick the best FundManager's balanced fund. Trust me they will beat your selection every time.
They will move the funds between top20, small caps, property and industrial as they see fit.

http://www.equinox.co.za/unittrusts/funds/fundperformances.asp
Select 5 years, top, 100, now look for the manager with the best return for all "balanced funds". Coronation, Foord, PSG are all good choices

Personally I would go for 100% Coronation Balanced plus. Also go with no broker.
Also do your research on what exit/transfer fees are charged when you transfer via section 14 transfer to another manager

I do program financial investment systems.

 

[supersunbird]

For a RA your investment must be regulation 28 compliant, which means, < 75% equity and of which <25% property, also < 25% offshore.

Unless you do extensive research on the markets, just pick the best FundManager's balanced fund. Trust me they will beat your selection every time.
They will move the funds between top20, small caps, property and industrial as they see fit.

http://www.equinox.co.za/unittrusts/funds/fundperformances.asp
Select 5 years, top, 100, now look for the manager with the best return for all "balanced funds". Coronation, Foord, PSG are all good choices

Personally I would go for 100% Coronation Balanced plus. Also go with no broker.
Also do your research on what exit/transfer fees are charged when you transfer via section 14 transfer to another manager

I do program financial investment systems.

Also a good option.

 

[AlmightyBender]

Also a good option.

Agree

 

[MOwrt]

Personally I'd find out which company charges the least fees. From there you could probably invest in any fund via the asset managers lisp. Also your selection would need to be reg 28 compliant. Allan Grays balanced and stable funds already comply.

 

[Devill]

Hi Guys

Want to start an RA with Coronation, going to put in R4000 a month.
Can anyone suggest which funds would be best for an RA. I'm 27 years old.

Thanks for the help.

If I was you I would think about maximizing my tax breaks with the RA and then add a bit more perhaps but after that rather deposit the balance into a aggressive fund as you are still young and your risk portfolio could handle a lot more risk than R4000/month into an RA.

Ie, R1,600 into RA, R2,400 into an aggressive growth fund.

 

[^^vampire^^]

If I was you I would think about maximizing my tax breaks with the RA and then add a bit more perhaps but after that rather deposit the balance into a aggressive fund as you are still young and your risk portfolio could handle a lot more risk than R4000/month into an RA.

I currently add R2000 into a 10x RA, wanted to add this R4000 to something different and change that up to R6000 next year. Aiming to be over 20% of my salary so when they one day decide to kick the tax benefit up to 22.5% I'll be used to contributing that much.

 

[Devill]

I currently add R2000 into a 10x RA, wanted to add this R4000 to something different and change that up to R6000 next year. Aiming to be over 20% of my salary so when they one day decide to kick the tax benefit up to 22.5% I'll be used to contributing that much.

But effectively that means that you are likely to not maximising the earning potential of your money. Why not just invest in a more liquid fund that will more than likely out perform an RA and once the tax breaks are changed you dump a lump sum into the RA?

 

[Billy]

The top 20 and industrial are on the high risk side which is fine at your age. Must say the best balanced fund in terms of historical recent performance is the Allan gray.

At a recent Allan Grey report back function, an AG spokesperson in answer to a question indicated Coronation as their biggest competitor.

Hedge your bets and put R2000 into both Coronation and AG.