Why Changing Funds May Not Be Wise

changing-fundsOur previous blog posts dealt with some of the practical implications of the 2012 Budget as far as South African investors are concerned. Having dealt with the issues of interest rate exemptions and changes in taxes on dividends and capital gains, We now move on to some practical advice for all South Africans who have equity investments: The fact that switching between funds is not normally a good investment strategy. Continue reading

South Africa’s Best Unit Trusts

unit-trustsMost responsible brokers and financial advisors recommend investing over the long term. Unlike day-trading and short-term investments which often see investors losing money as they chase the ‘next big thing’ on the stock market, long term investment allows your portfolio to grow at a stable rate over the years and decades, while guarding your investments against short-term fluctuations in the markets. Continue reading

Actively Managed Portfolios: The Keys to Wealth-Building

managed-portfoliosDeciding to invest in shares or unit trusts is a brave step for many people, especially those who are a little risk-averse. Though these investment instruments may be more risky that just depositing money in the bank, the potential returns can transform your small savings into a sizeable fund that could provide you with the lifestyle you strive for and secure your financial future well into retirement.

Most clients opt to use the services of a broker when buying shares, and if your broker also acts as a sound financial advisor you should receive quality financial guidance. When it comes to shares, most financial services companies offer a range of funds – each one with a different level of risk and expected return. There are two general categories of fund that clients should be aware of: actively managed funds and passive funds. Continue reading