short term investment options

[Hanks]

Hi,

Iam looking at some short term investments options (up to 2 years) that will beat inflation rate.Iam looking at the Allan Gray Money Market Fund and CORONATION STRATEGIC INCOME.When looking at the fund sheet for the AG money market it has the following performance data.It mentions after 1 and 2 years you only get 5.7 and 5.4 % returns.So that means it doesnt beat inflation.It only starts to beat inflation after 10 years.Maybe i'am not understanding the data correctly ?

 

[chrisc]

Those are not really short term investments, hence the poor returns quoted. If you have R100k to spare, Finbond Bank offers good interest rates

Then there is also Investec Money Market, not great but better than what you quoted. 7.3% last time I looked

 

[Hanks]

In the AG money markey fund fundsheet it says that this investment is targeted for under 13 months + it says it a money market hence a short term investment.The coronation one makes sense as it has performance of 8.7% for year 1.

 

[chrisc]

Invest some money in it and let us know in October 2015

 

[Hanks]

Invest some money in it and let us know in October 2015

unfortunately / fortunately depending which way you look at it i wont be following your advice

 

[atomcrusher]

OP .. make sure you take into account that any capital gains are subject to SARS Tax

 

[VG008]

Why don't you look at a fixed deposit from a bank?

FNB | 24 Months | 6.92%
CAPITEC | 24 Months | 6.65% - 7.60%
NEDBANK | 24 Months | 7.05%
BIDVEST | 12 Months | 7.02% - 7.12%
RSA Retail Bonds | 24 Months | 7.25%

Please note: Most banks will charge you fees for early withdrawals. These fees can be crazy and often charged in % of the capital.

 

[Aquadyne]

Finbond Fixed Deposit
18 Months 9.75%
http://www.finbondmutualbank.co.za/Investments.php

 

[froot]

Looking at what the markets have been doing the last 3 months (and especially the last week), think 3 x, do once.