Good way to invest R10 000

[Ro87]

Hi all,

So I have a R10 000 birthday present and I am looking for a good way to invest it.
I am 26, no debt, and I'm with ABSA.

Capitec and Satrix are popular terms here, however, I'm not that clued up with ETF's and shares.
The ETF option seems like a lower risk than share trading. ABSA savings accounts interest rates are quite low so I don't think that's a good option.

Thanks

 

[froot]

If you want something easy, take a look at Absa's unit trusts. I've got several investments but my unit trust one at Absa has worked out at about 18% so far this year (and it hasn't been a good year).

 

[Ro87]

If you want something easy, take a look at Absa's unit trusts. I've got several investments but my unit trust one at Absa has worked out at about 18% so far this year (and it hasn't been a good year).

Do you mind sharing about which unit trusts at absa?

Also, can one buy them via internet banking or did you have to visit a branch?

 

[froot]

Do you mind sharing about which unit trusts at absa?

Also, can one buy them via internet banking or did you have to visit a branch?

Depends what risks you're willing to take. My best performers are the Select Equity ones, but it's also medium-high risk - a few times I've lost 10-15% on the account because of sudden drops in the market... but I've made way more money than I've lost.

You should be able to open the account online in your internet banking.
http://www.absa.co.za/Absacoza/Individual/Saving-&-Investing/Unit-Trusts/Local-Unit-Trust

Read up about it before you just plunge into it.

 

[xrapidx]

Satrix INDI has been doing well...

 

[Ro87]

Depends what risks you're willing to take. My best performers are the Select Equity ones, but it's also medium-high risk - a few times I've lost 10-15% on the account because of sudden drops in the market... but I've made way more money than I've lost.

You should be able to open the account online in your internet banking.
http://www.absa.co.za/Absacoza/Individual/Saving-&-Investing/Unit-Trusts/Local-Unit-Trust

Read up about it before you just plunge into it.

Thanks this is very helpful!
I'll do some research.

 

[Totempole]

If you can get in early on a ponzi scheme ...

... and you have a good place to hide/launder your ill-gotten rewards from SARS and SAPS...

 

[Getafix]

Buy Whisky. Lots of it!

 

[Ro87]

Buy Whisky. Lots of it!

If I cut back on the whiskey and hookers and invest another R500 every month, would unit trusts still be a good option?

In terms of management fees and returns vs ETF's.

 

[froot]

If I cut back on the whiskey and hookers and invest another R500 every month, would unit trusts still be a good option?

In terms of management fees and returns vs ETF's.

Management fees are included in the unit trusts (1.7% or so per annum). CGT is also worked out automatically.
But yes, you should add money on a regular basis, otherwise you're only going to just just bump over inflation every year.

 

[Ro87]

Management fees are included in the unit trusts (1.7% or so per annum). CGT is also worked out automatically.
But yes, you should add money on a regular basis, otherwise you're only going to just just bump over inflation every year.

ABSA has this:

Adviser Fees
Initial Adviser Fee: Max 3,42%
Annual Adviser Fee: Max 1,14%

Do you still have to pay adviser fees if you don't speak to an adviser?

 

[froot]

ABSA has this:

Adviser Fees
Initial Adviser Fee: Max 3,42%
Annual Adviser Fee: Max 1,14%

Do you still have to pay adviser fees if you don't speak to an adviser?

Which ones are you looking at? The normal unit trusts are managed without your input, so they have set fees (no advisers required).

 

[Ro87]

Which ones are you looking at? The normal unit trusts are managed without your input, so they have set fees (no advisers required).

I am looking at the Absa Select equity Fund. It has holdings in some good companies.
If there's no other fees then it looks good.

Froot thanks for the helpful advice dude

 

[froot]

I am looking at the Absa Select equity Fund. It has holdings in some good companies.
If there's no other fees then it looks good.

Froot thanks for the helpful advice dude

Cool.
Yeah my fees (which I see once a year) are peanuts compared to what I make.
Looking at my returns for the last 2 months, I made about a 5% increase in 8 weeks, which considering the current situation isn't bad at all.
But realise that reward requires risk, and it is a high risk account.

 

[Ro87]

Cool.
Yeah my fees (which I see once a year) are peanuts compared to what I make.
Looking at my returns for the last 2 months, I made about a 5% increase in 8 weeks, which considering the current situation isn't bad at all.
But realise that reward requires risk, and it is a high risk account.

Yes I know it's a high risk investment thanks dude.

 

[R13...]

Yes I know it's a high risk investment thanks dude.

I think though in terms of equity the coronation top 20 is top of the pops. If it's etfs the indi outperforms them all, you of course must take a look at what they all hold and decide. I'm in the corona nation top 20 and ytd I'm on about 23%.

 

[AnibugZA]

Been with Coronation for the last month now. Very impressed with their performance. Both the Balanced Plus and Top20 funds are doing good, but they are long-term investments. You can pull over 20% in a year.

You can sign up online, send them everything you need to via email, and check your account online too.
It was really easy, quick, and you can diversify your money over different funds. Min investment is R5000.

 

[Ro87]

I'll check out coronation too