Where to invest small lump sum into Unit Trusts?

[splinter_watsup]

Hey guys

I have R12500 to invest once off in a fund. When I started working I put R375 a month in satrix and never looked at it which was a horrible idea due to me only making like 3%. This is my fault for not monitoring it and not moving the money around.

I have now cancelled satrix and want to put that money into a unit trust. High risk for high return I feel is fine for me. Do any of you more financially savvy okes have some tips on where I should put this? At the end of the day I want to leave it there for 5 Years plus as long as its making me decent returns.

Also I would like to open another Unit trust that I contribute to monthly(Say R500) I have a retirement annuity with Allen Gray and I am really happy with the results I am seeing there.

All your help would be greatly appreciated.

 

[SauRoNZA]

Which Satrix did you put it in and for how long that it only generated 3%? That doesn't sound right at all.

Calculation says that's only 2.5 years which really isn't long enough for an investment like Satrix. I would have continued until Year 5 at least and then decided if it was worth my while or not.

 

[splinter_watsup]

Which Satrix did you put it in and for how long that it only generated 3%? That doesn't sound right at all.

Calculation says that's only 2.5 years which really isn't long enough for an investment like Satrix. I would have continued until Year 5 at least and then decided if it was worth my while or not.

I just had a look. I started with a SATRIX DIVI Equity Fund on the 5/14/12 then on 8/30/13 I moved it to the following:
Swiich From SATRIX DlVl Equity Fund inio SATRIX lNDl in the amount of50 %
Switch From SATRIX DlVl Equity Fund into SATRIX 40 in the amount of 50 %
This was after receiving my Tax Certificates and seeing I had made almost nothing with the DIVI?

It also looks like I put down R1000 when opening the account. Was I to quick on the draw? I feel like Unit trusts(due to the fact that they are managed) Will allow me to just leave the money and not really have to check up on it as much. I dont want to use the money especially not in the next 3-5 Years but I also dont want to be making less than I could in a savings account.

I dont know much about investments but its something I want to put more money into for the future without it taking up to much of my time.

 

[Viva]

Why not go to PSG and get some proper advice? They offer a range of managed funds.

If I remember correctly they have the Wealth Creator fund as a long term high risk investment. I think growth is between 20% and 30% annually.

 

[SauRoNZA]

I just had a look. I started with a SATRIX DIVI Equity Fund on the 5/14/12 then on 8/30/13 I moved it to the following:
Swiich From SATRIX DlVl Equity Fund inio SATRIX lNDl in the amount of50 %
Switch From SATRIX DlVl Equity Fund into SATRIX 40 in the amount of 50 %
This was after receiving my Tax Certificates and seeing I had made almost nothing with the DIVI?

It also looks like I put down R1000 when opening the account. Was I to quick on the draw? I feel like Unit trusts(due to the fact that they are managed) Will allow me to just leave the money and not really have to check up on it as much. I dont want to use the money especially not in the next 3-5 Years but I also dont want to be making less than I could in a savings account.

I dont know much about investments but its something I want to put more money into for the future without it taking up to much of my time.

Firstly DIVI isn't really geared towards pushing the share price itself up but rather to target shares that pay dividends.

Moving to another fund that quickly was a bad move and wanting to move it out yet again is another bad move. At least you haven't actually lost anything yet you just haven't seen massive gains.

DIVI did take a massive dip earlier this year (might have been late last year already as you illustrate) but right now it's sitting at about 9.*% last time I checked so it's on the up again.

Generally these are low costs investments and for the amount of money you are investing you will pay very little in fees. But you should really have left it at least three years (preferably five) before making any decisions.

 

[SauRoNZA]

If I remember correctly they have the Wealth Creator fund as a long term high risk investment. I think growth is between 20% and 30% annually.

That sounds very optimistic.

I'm sure it might have peaked there in any given year sure, but consistently year after year I doubt it.

Also couldn't find any link to such a product on their website, but I might be looking in the wrong place.

****

Oh found it, was on the Asset Management site which is separate.

http://www.psgam.co.za/psg-wealth-solutions/creator-fund-of-funds.php

As expected they did peak there but the 5 year average isn't nearly as high. Still very decent though.

As always though, past performance isn't any indication of future performance. If anything it would make me weary that it won't perform as well going forward.

 

[Viva]

That sounds very optimistic.

I'm sure it might have peaked there in any given year sure, but consistently year after year I doubt it.

Also couldn't find any link to such a product on their website, but I might be looking in the wrong place.

****

Oh found it, was on the Asset Management site which is separate.

http://www.psgam.co.za/psg-wealth-solutions/creator-fund-of-funds.php

As expected they did peak there but the 5 year average isn't nearly as high. Still very decent though.

As always though, past performance isn't any indication of future performance. If anything it would make me weary that it won't perform as well going forward.

Thanks for pointing that out - I was only going on memory here

The average return for this fund over the last 5 years seems to be 23.64%

 

[Hendrix]

No ways you only made 3%, i think you understanding your returns wrong...

Anyways, remember equities are long term, you seem to want to chop and change too often, sometimes you need to invest and let it run it's course...

 

[dunkyd]

Split it into AG 's top 5 funds. Now relax and live peacefully...

 

[borga]

Thanks for pointing that out - I was only going on memory here

The average return for this fund over the last 5 years seems to be 23.64%

Return should also be compared against the market and not just as an % as the market may do well in some years and not so in others. If these units trust are predictors of how the market did over that time then that 23.64% isn't exceptionally good.
http://www.moneyweb.co.za/moneyweb-unit-trusts/south-africas-unit-trust-heroes

 

[Viva]

Return should also be compared against the market and not just as an % as the market may do well in some years and not so in others. If these units trust are predictors of how the market did over that time then that 23.64% isn't exceptionally good.
http://www.moneyweb.co.za/moneyweb-unit-trusts/south-africas-unit-trust-heroes

Take a look here

Oh found it, was on the Asset Management site which is separate.

http://www.psgam.co.za/files/FactSheets/PSG-Wealth-Creator-FoFs-Class-D.pdf?d=20140918191316

Of course there is nothing particularly bad about trying to get growth that equals that of the market. This is essentially what a ETF like Satrix 40 does, not so? Anyway, you can see how the Wealth Creator Fund of Funds D performed against the SA market by checking the link.

BTW, this is not a unit trust.