If you want to invest R10,000 in South Africa, here are the best three options from an investor, with each based on its suitability for long-term or short-term goals:
Direct shares
“Shares are volatile and, as a result, not ideal for short-term investments,” she explains. She chooses direct shares for long-term investment planning, which may be conveniently traded on EasyEquities, the country’s most cheap trading platform. Speak with your financial planner if you’re unclear where to begin.
Unit trusts
Gopee-Mothie recommends creating a unit trust to start or supplement an emergency fund. “These are appropriate for temporarily storing your capital,” she says. They are less volatile than share portfolios since they are unit-based. Because there is no specified timeframe for the investment, you have a little more discretion with them, and they give competitive returns for short-term planning. Learn more about the benefits of unit trusts by reading this.
Retirement annuity (RA)
Are you satisfied with the state of your emergency fund? Consider increasing your tax efficiency by contributing to your RA. “To maximize your tax rebate, you can pay up to 27.5% of your gross yearly income to your retirement annuity,” Gopee-Mothie explains. Use this calculator to see how much you need to save each month to enjoy your retirement.
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