Investment Help

[^^vampire^^]

Hi everyone

I've got R15 000 and looking for the best way to invest it.
I'm currently looking at the Bidvest Bank 121 Day notice deposit as it seems to be the best so far - I'm planning of contributing R1000 a month.

I've already got a unit trust so I'm not really interested in that.

Any ideas of how to grow my money in a safe way. The interest rates are looking shocking across the board.

Thanks

 

[HavocXphere]

Any ideas of how to grow my money in a safe way. The interest rates are looking shocking across the board.

Higher return usually means higher risk. You'll have to abandon one of those to goals or settle for a compromise.

It also depends on risk profile & how your current investments are distributed...so we can't really provide solid advice without solid info. Despite that I'd suggest RSA retail bonds or money market a/c. Usually you need a bit more though to go for money market. Both of those tend towards the safe & low return side. Alternatively Satrix offers options where you can pay in monthly.

 

[^^vampire^^]

I've currently got a unit trust account with FNB and a Satrix40 that I contribute to monthly. I had an ABSA 32 day (where the R15 000 came from) but the interest was pathetic - not even sure why they offering such products when they aren't even beating inflation. I've looked into money market accounts but the quoted interest is roughly 1% on R100 000 - think that's completely ridiculous too.

I saw the RSA retail bonds are at about 8% - are these a safe investment or is some government official going to launder my money and pocket it? Have you had any experience with these?

 

[HavocXphere]

I saw the RSA retail bonds are at about 8% - are these a safe investment or is some government official going to launder my money and pocket it? Have you had any experience with these?

No I haven't bought any. Yes they are safe...probably the safest of all the investments mentioned in this thread...I'll spare you the details. Make sure you go for the inflation linked one since rates are at a historical low.

money market accounts but the quoted interest is roughly 1% on R100 000 - think that's completely ridiculous too.

No thats not right. They should be like Inflation + 2 or something like that.

Make sure you've got an emergency fund....most of these investments will screw you over if you pull the money early.

 

[Shayd]

Take a look at a money market account from Allan Gray, you can also contribute monthly to it. Effective interest rate is 5.88% as at today. Only trade off is that it takes 2 business days to get your money out when you need it.

I usually place my clients' short term investment money there or in the Allan Gray Stable fund.

Please understand I am not providing official advice and in no way take accountability for any decisions you make based on the information I provide. Yes the legal schpiel is necessary as I am an authorised financial services provider.

 

[Hard Rain]

There's gonna be a correction in the precious metals market within a matter of months. When that happens, buy some physical gold and silver. The trade-off with owning precious metals was always the opportunity cost of not having a yielding asset. Now that interest rates are so crap it no longer matters. Hedge worldwide currency inflation with the gifts from the stars