So, you have $100,000 and you’re thinking of investing in South Africa – great choice! You may wonder where to invest 100k in South Africa. If so, this article provides guidance on the best investment options available in South Africa at the moment. We examine each type of investment and offer tips on how to choose an option that fits your risk tolerance and goals best. By the end of this article, you’ll know where to invest 100k in South Africa, but more importantly, you’ll also be able to pick the right one for your specific situation.
Get Educated About Investments
There are numerous options when it comes to choosing where you would like to invest your hard-earned money. Some of the more popular options include stocks, bonds, mutual funds, exchange-traded funds (ETFs), certificates of deposit (CDs) and real estate. Before you make any decisions about what kind of investment vehicle you would like to pursue, it is important that you educate yourself on the differences between these types of investments.
Start Small
It is important to start small. This will give you the time you need to get your feet wet without risking too much. It also gives you a chance to test your idea, see if it’s viable, and find out what works and what doesn’t. That way when you do decide it’s time for expansion, you’ll be armed with that knowledge.
Choose Mutual Funds Over ETFs
Mutual funds are an investment vehicle that pools together money from many investors in order to provide capital for different portfolios. Mutual funds can be used as part of a diversified investment portfolio, which typically consists of different types of investments like stocks, bonds, and cash. The main advantage of using mutual funds is the lower risk involved. ETFs are like mutual funds, but rather than being invested in specific assets within the fund, ETFs trade on the stock market like stocks.
Diversify Your Portfolio
Diversifying your portfolio is the best way to mitigate risk. You should have at least four different asset classes in your portfolio. One of those should be bonds. Bonds are not very exciting, but they provide reliable income when you need it most. They also typically pay higher interest than other asset classes.
