Unit Trusts

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dielaksman

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Hey guys,

So I am looking to start saving a bit of money and was thinking that unit trusts might be a nice option, seeing that i can't then just take the money if it was in a savings account or something.

I am currently banking at Absa and they have a whole rage of options to choose from. I have no clue where to start or what will be the best option. Anybody who might have some experience and advice that might be of help? I would like to create a debit order of about R5000pm that would go towards this.

Thanks
 
5k a month is a lot of money to put in.

The Absa unit trusts are nice, I've got a fair bit in it, but by no means should you think "money in, profit out". Last year I made money, this year I lost a crapload. With the Marikana mine situation I lost a lot of money too.

As to which one you want to look at, what risks/returns are you interested in? Low risk = low return. High risk could result in a high return (I've made 5% on my capital in a week sometimes) or a whack across the knuckles (losing 5% capital in a week).
 
would take a look at coronation /allan Grey /Sanlam before Absa.My view but Absa with Ramos in charge does not deserve your business
 
Coronation, Allan Grey, Investec all probably better options. I wouldnt just go with Absa because you bank with them.
 
Ecco said:
Coronation, Allan Grey, Investec all probably better options. I wouldnt just go with Absa because you bank with them.
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This ^ 100%. Unless you attend a Standard Bank Investment Seminar and keep some money aside for speculating. Commercial Property has done very well since Jan this year.
 
So the best bet probably would be to maybe get a financial advisor/investment specialist to come and see me.
 
Geriatrix said:
Satrix Divi & Satrix 40 gets my vote.
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Finweek have run a couple of columns on the demise (and then not) of the satrix top 40. I have money in the DIVI (in the last 1/4 I lost a minuscule), but I'm doing much better with my coronation top 20.
 
R13... said:
Finweek have run a couple of columns on the demise (and then not) of the satrix top 40. I have money in the DIVI (in the last 1/4 I lost a minuscule), but I'm doing much better with my coronation top 20.
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Oh cool, will have a look for the article then, thanks.
:edit
Coronation admin costs seems to be substantially higher than Satrix. Will have a look at the performance comparison over 3 years or so.
 
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Coronation 33%
Allan Grey 33%
Satrix (you will have to choose which one) 15%
Kruger Rands 16%
 
I was just speaking about this to a colleague the other day. Initially I was looking at the Allan Gray - High Equity unit trust. My friend suggested just buying Satrix 40 since I will not have to pay all the fees to Allan Gray whilst still getting the same market related return.

So now I'm kind of set on Satrix 40. I just need to figure out what is the best way to go about it. I'm a first time investor. No savings at the moment.

Edit: I'm looking at putting in around R50k lump sum and then around R10k per month.
 
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Just make sure you have something guaranteed ... dont put your eggs in one basket
 
RiaX said:
Just make sure you have something guaranteed ... dont put your eggs in one basket
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That's what unit trusts are bro, they are spread amongst various industries and companies.
 
Griz said:
That's what unit trusts are bro, they are spread amongst various industries and companies.
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But some are still higher risk than others - the higher the projected growth rate, the faster they can fall. I agree about spreading the risk.
 
No unit trust manager will allow his portfolio to slide into the sea. If you want to be conservative, Allan Gray have numerous "safe" funds for you to invest in. I like the Satrix concept and have done very well from it through the years, but Satrix is only one avenue, there are many.
 
Griz said:
That's what unit trusts are bro, they are spread amongst various industries and companies.
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Surely they can crash if the market crashes ? isnt things like a bank's fixed deposit the only "true" guaranteed investment ?
 
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