thanks for your input signates, that's an interesting strategy that i hadn't considered. If you don't mind me asking, what has been the average return annually? I've been thinking DIVI fund for the whole amount but you have certainly given me "food for thought" regarding a even spread on all the funds.
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SATRIX investment advice
- Thread starter delta66
- Start date
LancelotSA
Banned
FYI: you dont need a broker to invest in satrix etf's!! you'll end up paying 3% of capital upfront and a "management" fee of 1% annually even though the charges are capped its still high when comparing "direct investment" with them(satrix)
FYI, I am fully aware of this... but as stated when you invest directly they tell you straight out that they do not provide advice. You appear to need advice.
Further to this if you were willing to listen you might have been given information from me about many brokers being willing to discount the upfront commission if circumstances dictate. They could also drastically reduce, or even eliminate, the ongoing "management" fee if you agreed that you are not wanting them to manage your portfolio going forward. That will mean they provide you with upfront advice, set it up for you, and then you never see them again.
As for those fees quoted by you.... you clearly have not bothered shopping around...
Oh how nice it would have been if your attitude had been a little better to start with and to actually be able to give you proper advice...
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LancelotSA
Banned
So let's get this straight... you thought you'd diversify/balance your investment by splitting your investment across those funds? Did you ever bother to consider what those funds consist of?
Satrix RESI endeavours to replicate the performance of the FTSE/JSE Resources 20 index. This index consists solely of resources based stocks, including mining companies, mining holding companies, mining finance and exploration companies and resource based stocks, such as Sasol.
The Satrix Fini endeavours to replicate the performance of the FTSE/JSE Financial 15 index. This index comprises the 15 largest financial shares listed on the JSE.
Satrix Indi endeavours to replicate the performance of the FTSE/JSE Industrial 25 index. This index comprises the top 25 industrial companies listed on the JSE.
Now let's look at the Satrix 40...
Satrix 40 endeavours to replicate the performance of the FTSE/JSE Top 40 index. This index constitutes the forty largest companies, by market capitalisation, listed on the JSE. Satrix40 is the ultimate investment vehicle, providing investors with a diversified portfolio with exposure to the top 40 companies on the equities market in one listed and liquid investment. This includes financial, industrial and resource shares!
Effectively you would have been "diversifying" (I put that in inverted commas as proper diversification would mean accounting for geographical markets, different assets classes etc etc) anyway by just investing in the Satrix 40! Feel free to check out the fund fact sheets of each to see the specific make up of these funds.
Also offering advice on investing a lump sum of a million differs from advice on a recurring monthly investment! With the latter you are buying units on an ongoing basis!
Then just to throw something out there for delta to ponder... you say you are looking at a term of about 3-5 years and you want to minimize risk. You do of course realise that these funds are equity funds which definitely leans towards the aggressive end of the investment spectrum? Out of interest here are graphs illustrating the returns of each over the last three years... your million would not be looking good right now. But yeah, advice is really overvalued.
I am not saying you will not make money over three years but I am saying you need to be aware of the risk! Sh|t I just realised it must be drummed into me to ensure people do not fsuk up as I am unwillingly providing advice here!
Please accept my apologies upfront for my tone but it annoys me when you hear people professing to be experts and offering advice to others when they clearly do not know it all (not that I am professing that I do either, of course, but I'm sure I know a little more than most...)
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Ou grote
Honorary Master
So let's get this straight... you thought you'd diversify/balance your investment by splitting your investment across those funds? Did you ever bother to consider what those funds consist of?
Satrix RESI endeavours to replicate the performance of the FTSE/JSE Resources 20 index. This index consists solely of resources based stocks, including mining companies, mining holding companies, mining finance and exploration companies and resource based stocks, such as Sasol.
The Satrix Fini endeavours to replicate the performance of the FTSE/JSE Financial 15 index. This index comprises the 15 largest financial shares listed on the JSE.
Satrix Indi endeavours to replicate the performance of the FTSE/JSE Industrial 25 index. This index comprises the top 25 industrial companies listed on the JSE.
Now let's look at the Satrix 40...
Satrix 40 endeavours to replicate the performance of the FTSE/JSE Top 40 index. This index constitutes the forty largest companies, by market capitalisation, listed on the JSE. Satrix40 is the ultimate investment vehicle, providing investors with a diversified portfolio with exposure to the top 40 companies on the equities market in one listed and liquid investment. This includes financial, industrial and resource shares!
Effectively you would have been "diversifying" (I put that in inverted commas as proper diversification would mean accounting for geographical markets, different assets classes etc etc) anyway by just investing in the Satrix 40! Feel free to check out the fund fact sheets of each to see the specific make up of these funds.
Also offering advice on investing a lump sum of a million differs from advice on a recurring monthly investment! With the latter you are buying units on an ongoing basis!
Then just to throw something out there for delta to ponder... you say you are looking at a term of about 3-5 years and you want to minimize risk. You do of course realise that these funds are equity funds which definitely leans towards the aggressive end of the investment spectrum? Out of interest here are graphs illustrating the returns of each over the last three years... your million would not be looking good right now. But yeah, advice is really overvalued.
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I am not saying you will not make money over three years but I am saying you need to be aware of the risk! Sh|t I just realised it must be drummed into me to ensure people do not fsuk up as I am unwillingly providing advice here!
Please accept my apologies upfront for my tone but it annoys me when you hear people professing to be experts and offering advice to others when they clearly do not know it all (not that I am professing that I do either, of course, but I'm sure I know a little more than most...)
Yep, that's about the same risk as buying into any Equity only Unit trust.
Get a balanced fund if you want to diversify.
Before investing the million, you need to decide how much you are willing to lose.
And I'd also recommend going to one or 2 financial advisors first, and then decide for yourself.
I concur with what Lance says, except for the usual banter.
LancelotSA
Banned
I concur with what Lance says, except for the usual banter.
I apologise....
As stated I sometimes just can't help myself when I read some people's views!
Just buy SATRIXRAF on the dip. Then leave it alone. Good time is NOW, TODAY. Maybe early Monday morning. Raf is the best co's on the top 40 that will shoot up when the tide is up. Co's with the best management, good cash flow and the cheapest share price. Let alone the cheap fees. These will fly when the market gets back to normal.
So let's get this straight... you thought you'd diversify/balance your investment by splitting your investment across those funds? Did you ever bother to consider what those funds consist of?
Satrix RESI endeavours to replicate the performance of the FTSE/JSE Resources 20 index. This index consists solely of resources based stocks, including mining companies, mining holding companies, mining finance and exploration companies and resource based stocks, such as Sasol.
The Satrix Fini endeavours to replicate the performance of the FTSE/JSE Financial 15 index. This index comprises the 15 largest financial shares listed on the JSE.
Satrix Indi endeavours to replicate the performance of the FTSE/JSE Industrial 25 index. This index comprises the top 25 industrial companies listed on the JSE.
Now let's look at the Satrix 40...
Satrix 40 endeavours to replicate the performance of the FTSE/JSE Top 40 index. This index constitutes the forty largest companies, by market capitalisation, listed on the JSE. Satrix40 is the ultimate investment vehicle, providing investors with a diversified portfolio with exposure to the top 40 companies on the equities market in one listed and liquid investment. This includes financial, industrial and resource shares!
Effectively you would have been "diversifying" (I put that in inverted commas as proper diversification would mean accounting for geographical markets, different assets classes etc etc) anyway by just investing in the Satrix 40! Feel free to check out the fund fact sheets of each to see the specific make up of these funds.
Also offering advice on investing a lump sum of a million differs from advice on a recurring monthly investment! With the latter you are buying units on an ongoing basis!
Then just to throw something out there for delta to ponder... you say you are looking at a term of about 3-5 years and you want to minimize risk. You do of course realise that these funds are equity funds which definitely leans towards the aggressive end of the investment spectrum? Out of interest here are graphs illustrating the returns of each over the last three years... your million would not be looking good right now. But yeah, advice is really overvalued.
link
link
link
link
I am not saying you will not make money over three years but I am saying you need to be aware of the risk! Sh|t I just realised it must be drummed into me to ensure people do not fsuk up as I am unwillingly providing advice here!
Please accept my apologies upfront for my tone but it annoys me when you hear people professing to be experts and offering advice to others when they clearly do not know it all (not that I am professing that I do either, of course, but I'm sure I know a little more than most...)
Also have to agree with Lance on this one. The SATRIX 40 is sufficient diversification (in terms of equity exposure), unless you want to take a punt on financials, for instance, and effectively weight them higher by also buying Satrix Fini.
Getting one or two opinions is also not a bad idea, even if it is only in terms of looking at your complete portfolio in terms of diversifying your assets into cash, property and equity.
3-5 years, as Lance has said, is a relatively short equity investment horizon, in other words a 100% equity investment carries risk - should you want to withdraw at anytime in the next 5 years.
Having said all that, I really like the SATRIX product and have been making monthly investments for the last 5 years. Took a beating last year, but I have a 10 year plus investment horizon - and some rand-averaging with purchases during the last year also helped.
HavocXphere
Honorary Master
R1 million *initial* investment & the plan is to ask on an IT forum.:wtf:
You might want to check out the psg-online forums. Lots of knowledgable guys there. Mainly active traders...but I'm sure they know something about your kind of passive investments too.
Nothing much of value to add aside from noting that the question confuses me: If you already know you want Satrix, then what are you asking? And if its intended as a passive investment, then why do you need to discuss "strategy" with anyone? I just don't follow.
You might want to check out the psg-online forums. Lots of knowledgable guys there. Mainly active traders...but I'm sure they know something about your kind of passive investments too.
Nothing much of value to add aside from noting that the question confuses me: If you already know you want Satrix, then what are you asking? And if its intended as a passive investment, then why do you need to discuss "strategy" with anyone? I just don't follow.
Nice.
You know, Lance might not be the most popular person on the board but he is not a troll. Evidently - YOU are. If you don't agree with him, fine, ignore his posts. Although I must say his posts are much more sensible than your ambiguous ramblings.
lance is right.
sufficient "diversity" in satrix 40. yip.
what you are doing by casting ur net too wide is exposing urself to more riskier opportunities.
stick with satrix 40 for now.
also, u need to consider is you want capital preservation, growth and/or at what level of growth?
IMO: 3-5yr in equities is not enough time to realize the full growth potential!! they quite volatile..
sufficient "diversity" in satrix 40. yip.
what you are doing by casting ur net too wide is exposing urself to more riskier opportunities.
stick with satrix 40 for now.
also, u need to consider is you want capital preservation, growth and/or at what level of growth?
IMO: 3-5yr in equities is not enough time to realize the full growth potential!! they quite volatile..
LancelotSA
Banned
Thanks. Freaks rock.