An Old Mutual report examines the long-term performance of South Africa’s asset classes and what it means for the future.
The report focuses on three major asset classes – equities, bonds, and cash – and how they have historically performed in South Africa.
“While a bank deposit exposes you to minimal risk, there is a cost to that security,” the report discovered.
Over time, cash does not significantly increase your real wealth. Cash has only returned 0.9% per year after inflation over the last 93 years. It is preferable to own stock in a bank than to leave your money there.”
Using average returns for each asset class, Old Mutual discovered that it would take 10 years to double your money in equities, 41 years in bonds, and 90 years in cash.
What is the simplest way to double your money?
Here are some ideas for doubling your money:
- Bonds that are tax-free. Initially, tax-free bonds were only issued during specific periods.
- Corporate Deposits/Non-Convertible Debentures (NCD).
- National Savings Certificates.
- Bank Fixed Deposits.
- Public Provident Fund (PPF).
- Mutual Funds (MFs).
Which investment has the highest return in South Africa?
South Africa’s Best Safe Investments with High Returns
- South African Government Treasury Bills.
- Money Market Funds.
- RSA Retail Savings Bonds.
- Fixed Annuities.
- Dividend-Paying Stocks.
