MyMoney Online

Investing on your own? Do your homework ...

Taking the option to go it alone with your investments takes some work.

The financial universe is huge and navigating your way through the options takes a lot of research and study before making an appropriate choice. You could choose investments that are actively managed by specialist investment managers or you could go the passive route investing in funds which offer the average of certain markets.

Unit Trusts – The active route

They are managed by fund managers along specific guidelines. So you can choose funds which align to your objectives. In South Africa alone there are over 900 to choose from and globally there are thousands more. Each fund provides a fact sheet which is a good resource to help you understand where and how the fund manager invests. It explains the risks associated with the expected returns providing past performances relative to their benchmarks.

You will need to carefully study this information to get a better appreciation of your investment. If you don’t have the time or inclination to do this work then perhaps a financial planner is the better route.

Exchange Traded Funds – The passive route

You may want to simplify your plan by investing in the average of certain markets. Exchange Traded Funds offer investments in various sectors and asset classes. For example, an index of the Top 40 shares on the JSE. You can invest in these quality shares and get the average of their returns without having to trade yourself. You simply invest an amount per month or a lump sum and you then track the performance of the 40 shares. The costs are very low ( around 1% per annum) compared to unit trusts ( 2,5%) and share portfolios ( 2%) and you can start with as little as R300 per month.

Where to go

To help you understand what you are doing, there is a lot of information on websites that offer these investments, such as, www.equinox.co.za and www.etfsa.co.za where you can invest in specific assets like gold and property. As a general rule, it’s time in the market that will produce your results, Shares are for the long term so don’t look for get rich quick results. Your wealth is created over time with the phenomenal effect of compounding.

Read More
2 best investments on the JSE right now (and one from the USA)

2 best investments on the JSE right now (and one from the USA)

It’s Stock Pick Monday on Bruce Whitfield’s The Money Show. He interviews I-Capital Managing Director Lance Williams.

Women are better investors than men

Women are better investors than men

Warren Ingram explains why it is that women clearly outperform men.

Update your Personal Balance Sheet for 2015…

Update your Personal Balance Sheet for 2015…

Financial Fitness coach Paul Roelofse says the beginning of a new year is a great time to update your personal balance sheet...

Financial damage control to sidestep those January blues….

Financial damage control to sidestep those January blues….

It’s that time of year when we have turned the corner and need to get our finances back in order as soon as possible...

The 3 most pressing (financial) questions asked in 2014

The 3 most pressing (financial) questions asked in 2014

Financial Fitness Coach Paul Roelofse gives sound advice on how to optimise your savings - or just to make ends meet in 2015.

How to choose the right medical aid option

How to choose the right medical aid option

Financial fitness coach Paul Roelofse on how to go about choosing the correct medical aid option for you and your family.

Popular articles
It's not the end of the road... Top tips to improve your matric

It's not the end of the road... Top tips to improve your matric

"Recognise that it’s not the end, it’s the beginning." Expert advise for school-leavers who want to improve their results.

Pamela Nomvete on her downfalls as actress, and 'climbing back'

Pamela Nomvete on her downfalls as actress, and 'climbing back'

This week Xolani Gwala's speaks to former Generations actor Pamela Nomvete for #WhatInTheWorldHappenedTo feature.

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Michiel le Roux speaks about the fascinating story behind the little bank that has the Big 4 shaking in their boots.

Best way to get richer (especially if you’re between ages 20 and 45)

Best way to get richer (especially if you’re between ages 20 and 45)

Still young(ish)? Consider the single best thing you can do to increase your wealth by much more than the inflation rate.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?

5 ways the NSFAS funding model will change in 2017

5 ways the NSFAS funding model will change in 2017

The National Student Financial Aid Scheme (NSFAS) will pilot a new funding model in 2017. NSFAS chairperson Sizwe Nxasana explains.