Standard Bank Share Plus

[Ocali]

i heard about this on the radio yesterday afternoon.

thought i would check it out this morning, seems legit.

anyone used this before?
any fine print 1 should know about?

cheers

 

[akescpt]

I smaak this also...

 

[Hamster]

So they invest your money for you in the Top40 (which you can do yourself easily). They cap your earnings at a certain % and probably keep the rest of it for themselves. ie: the market grows by 20% (assuming a good year ) they keep 4.5%

Could become expensive. FNB's Share Saver is a much better option imo.

 

[HavocXphere]

So they invest your money for you in the Top40 (which you can do yourself easily). They cap your earnings at a certain % and probably keep the rest of it for themselves. ie: the market grows by 20% (assuming a good year ) they keep 4.5%

Could become expensive. FNB's Share Saver is a much better option imo.

They guarantee the capital though, which is new.

 

[Hamster]

They guarantee the capital though, which is new.

I must've missed that part. I suppose the earnings being capped can be seen as the cost of the account but like I said - it could end up being very expensive. That said, 15.5% over 14 months is not bad at all.

 

[HavocXphere]

I must've missed that part. I suppose the earnings being capped can be seen as the cost of the account but like I said - it could end up being very expensive. That said, 15.5% over 14 months is not bad at all.

Yeah it can get expensive if the market soars...but its an interesting product from a risk management perspective. e.g. Old people that want equity exposure but are scared of losing everything.

One would have to look at the fine print on the capital though. i.e. If it climbs 10% in first year then drops 5% in the next...is that 10% covered as "capital"?

 

[Gaz{M}]

A question to the tax gurus: Would this be classified as "interest earned" and not income, in which case it is great because you get an annual R22 000 interest allowance vs paying income tax at your marginal rate from the first cent you earn on your investment? Also it is not a capital gain, right? So no CGT.

So it is better than buying your own shares, ETF or unit trust?

 

[Hamster]

One would have to look at the fine print on the capital though. i.e. If it climbs 10% in first year then drops 5% in the next...is that 10% covered as "capital"?

I read somewhere that interest is calculated at the end of the term.

 

[HavocXphere]

hmm...it does seem to be phrased as "interest" which seems a little weird to me...and possibly interesting from a tax perspective.

 

[Ocali]

yes the interest is calculated at the end of the term only.

money is guaranteed , but what happens if the market doesnt perform at all and at the end of the 14months, the market is sitting below than it started? i wonder how that would pan out, or is that an unlikely event in 14 months.

the deadline is december 16th iirc , it isnt very long term, so i am definitely interested. also minimum deposit is R25k

 

[akescpt]

You put in 50k and market tanks you get 50k back. Market climbs 25% then you get 15% extra + initial investment. No risk by the looks of it.

Been interested in this.