It's simple, lending money to government is a guaranteed income bearing investment.
Most investors fail to recognise the value in this form of investing. Yet, it's hugely important if you want to bank more than just capital profits on your investments.
If you lend money to someone, you want to know that you're lending it to a person who can pay it back, along with the interest you charge.
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If you're looking to invest in government bonds, one of the easiest ways it through RSA Retail Savings Bonds.
But you have other options. You could look to invest in exchange traded funds (ETFs). Some of these ETFs track the performance of government bonds.
So how do these ETFs work? What are your options? And how can you invest?
Read on to find out…
Bond ETFs listed on the JSE
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If you want to have low-risk investments in bonds, one thing you need to consider is whether your investment returns are at least keeping up with inflation.
If they aren't, then you're actually losing money.
So if you want to invest in inflation-linked bonds, what are your options?
Let's take a closer look at two of them…
Keep up with inflation with inflation-linked RSA Retail Sav... ››› more
Investing in shares has its advantages. There's the potential to make bumper returns as the stock market soars, but with this comes the real risk that the market will crash, taking your shares with it.
What can you do to overcome this?
One option is to have a portion of your portfolio in bonds. This will offset some of the higher risks associated with the stock market. And you have the added... ››› more
When inflation is high, like it is now, it can be difficult to get returns to beat it.
If you've got money in a savings account, chances are you're losing money as the interest rate you receive doesn't even offset the effects of inflation.
So what can you do? You could look to inflation-linked government bonds. And you can invest in these bonds through an exchange traded fund (ETF).
Read... ››› more
When you buy shares of Sasol, what exactly are you entitled to? The answer is: Nothing. When it comes to investing, there are very few guarantees. You can lose money no matter what you do. Most people don't realise it, but you often even lose money just by holding it in the bank. Read on to uncover how you can earn a return on your money safely…
Right now, banks are paying a paltry percentage ... ››› more