Looking for proof that unit trusts are still popular locally? Here it is: The Association for Savings and Investment South Africa says the local collective investment schemes industry attracted the second highest quarterly net inflows ever for the first quarter of the year, at R47 billion. If you'd like to join the trend, here's what to look for to ensure you invest in a top performing local unit ... ››› more
Asset allocation is one aspect of investment that investors agree to disagree on. While most agree it's important to split your investments across different asset types, the amount you should invest in each differs based on your risk appetite. Now, with exchange-traded products gaining popularity in South Africa, you need to consider them as a new low-risk avenue for your asset allocation if you h... ››› more
Gold prices dropped to a new two-year low this week. As a result, global investors have lost confidence in all things gold and gold exchange-traded funds (EFTs) have seen a drop, too. But South Africa's New Gold ETF hasn't followed suit - in fact, it's actually seen a rise in interest!
Yesterday, precious metals recovered from a two-day sell-off‚ with the gold spot price up 3.05%, says... ››› more
“The prime motive for holding a global equity portfolio is to obtain the benefits of international diversification. Diversification comes from holding investments that have unrelated returns,” says The South African Investor. Do you know how to do this? Read on to find out a cheaper alternative to get international exposure and great returns.
ETFs are a cheap alternative if you want interna... ››› more
“In the wake of the remarkable volatility across equity and bond markets in recent years, the question of how to optimally balance a portfolio has come to the fore. With so many asset classes moving in line with each other, now more than ever, investors and their professional advisers need to focus on the appropriate weightings of different asset classes they should hold in their portfolios,” ... ››› more
Keeping an eye on the stock market every day to watch the movements of companies you want to invest in is a great investment strategy. But this comes with risk. After all, share prices rise and fall daily. If you don't have the stomach for this risk, there's an easy way to take advantage of stock market success. In fact, you can even use it to profit from all the top performing companies in one mo... ››› more
Just because exchange-traded products (ETPs) like exchange traded funds (ETFs) and exchange-traded notes (ETNs) are passive investment vehicles, doesn't mean they're not exciting. You can see great returns from ETPs. And new research shows that exchange-traded products like ETNs and ETFs can actually outperform unit trusts. But you don't have to stick to the same old-same old ETPs- Moneyweb says t... ››› more
Forget about buying individual shares! Study after study has shown that more than 50% of any gain an investor makes on a share comes from one thing: The sector it's in. And that's where the magic of ETFs comes in…
If you want to invest in equities but don’t know what to choose, simply buy an ETF, advises Viv Govender, the investment analyst behind Index Trader.
ETFs make... ››› more
According to a recent study, only one in three unit trusts will do better next year than it did this year. The other two will perform the same or worse. That means with over 150 unit trusts currently on the local market, you only have a 32% chance of picking the right one! To make your job easier, here are five things you must know about your unit trust before you invest a cent…
Thanks to gov... ››› more
As a savvy investor, you probably know all about exchange traded funds (ETFs) but have you heard of ETNs (exchange traded notes)? While the popularity of ETFs has taken off in a big way, ETNs have all but been ignored by ordinary investors. But here's the thing, ETNs are becoming more and more popular with retail investors - especially those looking to invest in commodities. Here's what you need t... ››› more
Unit trusts are a popular investment option as they're managed, which means you can usually trust that they're being effectively run. But new research shows that exchange-traded products like ETNs and ETFs can actually outperform unit trusts, and they're easy for you to manage yourself. Here's what you need to know if you're considering investing in them… Most investors add unit trusts to their ... ››› more
Investors have been holding their breath about the introduction of higher taxes that'll affect their investment portfolios. With President Zuma's State of the Nation Address offering only a vague idea of ‘increasing the tax base', all eyes now turn to next week's budget speech, as SARS is under strain to intensify its tax collections from a smaller pool of higher-earning taxpayers. Luckily, ther... ››› more
The JSE can be an extremely volatile market - up one day and crashing down the next. That's why many South Africans are now taking the ‘relatively safe' investment option of unit trusts. If you're new to the investment scene, chances are you're hesitant about investing without first running everything past your financial adviser. Here's what you should ask him before you join the crowd… “Sou... ››› more
Are you one of those people who can recognise a high-flying sector but aren't sure how to pick that sector's winning shares to bank HUGE gains? Or do you want to invest in the top 40 shares of the JSE, but simply don't have the capital? Don't despair - investing in Exchange Traded Funds (ETFs) is the answer to your investment needs. “An ETF is a fund that invests in a group of shares, like the o... ››› more
The best performing local unit trusts were honoured at the annual Raging Bull Awards ceremony in Johannesburg on Wednesday. The Awards recognise the top performing unit trusts on both outright performance and risk-adjusted performance. If you're planning to invest in unit trusts this year, use these seven points to check if you've invested in a top performing unit trust. The Raging Bull Awards hon... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.