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An interesting read; @Fin24 by Carin Smith asked SA financial experts what hey would do with R10 000 in 2020 - TFSA with offshore exposure, Unit trusts, listed shares and ETFs came up.
These were their responses;
These were their responses;
Eugene Visagie, portfolio specialist at Morningstar Investment Management South Africa
Visagie would invest the R10 000 in a tax-free savings account (TFSA).
Visagie would invest the R10 000 in a tax-free savings account (TFSA).
Brian Butchart, managing director of Brenthurst Wealth Management
Butchart also suggests the use of a tax-free savings account for the once off R10 000 investment. Because your money is not invested for a fixed term, you have full control at all times
Butchart also suggests the use of a tax-free savings account for the once off R10 000 investment. Because your money is not invested for a fixed term, you have full control at all times
Magdeleen Cornelissen, financial adviser at PSG Wealth:
Cornelissen, a financial adviser at PSG Wealth, also suggests using a tax-free investment, especially in the long term.
Cornelissen, a financial adviser at PSG Wealth, also suggests using a tax-free investment, especially in the long term.
Chris van Wyk, affiliated with the PSG Konsult Group:
Option 1: Hide the R10 000 under the mattress.
Option 2: If you want no risk of capital loss and a meagre return after inflation, he suggests you invest in fixed period (12 months) bank deposit.
Option 1: Hide the R10 000 under the mattress.
Option 2: If you want no risk of capital loss and a meagre return after inflation, he suggests you invest in fixed period (12 months) bank deposit.
Still Chris van Wyk:
Option 3: If you want moderate risk of capital loss, but the potential for a moderate return of inflation plus 4%, he suggests investing in first class unit trusts to achieve risk-spread over asset classes and domestic and international securities......
Option 3: If you want moderate risk of capital loss, but the potential for a moderate return of inflation plus 4%, he suggests investing in first class unit trusts to achieve risk-spread over asset classes and domestic and international securities......
Still Chris van Wyk: An example would be putting R3 000 of the R10 000 in the Allan Gray Equity Fund, R3 000 in the Prudential Enhanced Income Fund, and R4 000 in Prudential Dividend Maximizer Fund (B).
Still Chris van Wyk:
Option 4: If you are prepared to take a high risk of considerable capital loss, but equally, the high potential for significant capital gain, you can invest directly in two or three listed shares deemed to be performing below potential......
Option 4: If you are prepared to take a high risk of considerable capital loss, but equally, the high potential for significant capital gain, you can invest directly in two or three listed shares deemed to be performing below potential......
Still Chris van Wyk: For example, R4 000 in Stadio Holdings, R4 000 in Rand Merchant Insurance Holdings, and R2 000 in Shoprite Holdings.
Chris Eddy, head of investments at 10X Investments:
Eddy suggests focusing on areas you can control: namely, paying off credit card debt, choosing an appropriate asset mix for your goal and time horizon, and keeping fees down.
Eddy suggests focusing on areas you can control: namely, paying off credit card debt, choosing an appropriate asset mix for your goal and time horizon, and keeping fees down.
Sean Sanders, CEO and co-founder of Revix:
He suggests investing R10 000 in a diversified portfolio of alternative assets such as gold and cryptocurrencies, as these assets are not correlated to the same risk factors and economic drivers as more traditional investments
He suggests investing R10 000 in a diversified portfolio of alternative assets such as gold and cryptocurrencies, as these assets are not correlated to the same risk factors and economic drivers as more traditional investments
Abri du Plessis of Gryphon Asset Management:
Du Plessis says he would invest the once-off R10 000 in Kruger Rands.
Du Plessis says he would invest the once-off R10 000 in Kruger Rands.
Nesan Nair, senior portfolio manager at Sasfin Securities:
Nesan Nair, senior portfolio manager at Sasfin Securities is of the opinion that R10 000 would be too small for a share portfolio, so a unit trust or ETF would be better suited.
Nesan Nair, senior portfolio manager at Sasfin Securities is of the opinion that R10 000 would be too small for a share portfolio, so a unit trust or ETF would be better suited.
Gustav Potgieter of Aurum Trust:
Assuming a once-off R10 000 investment with a long-term investment horizon, Potgieter suggests finding a fund with more offshore exposure, but not limited to a specific region.
Assuming a once-off R10 000 investment with a long-term investment horizon, Potgieter suggests finding a fund with more offshore exposure, but not limited to a specific region.
