Every financial advisor says the same thing set aside a certain amount of money each month in a savings account, using a debit order. Once you’ve saved up a nest egg of R50 000, R100 000 or R500 000 you can invest in the money. And when it comes to investing lump sum there are the obvious or should we say popular among investors such as Money Market. But what about the not so obvious investments, here are a few alternatives.
Investing in infrastructure assets across Africa Infrastructure funds provide the opportunity to invest in essential public assets, such as:
- Toll roads
- communications assets such as broadcasting towers
- Rail facilities and other transport assets
- Utilities such as electricity power lines and gas pipelines.
They’re often attractive to investors looking for predictable returns, as infrastructure projects are typically characterised by low levels of competition and high barriers to entry. Infrastructure funds are managed by specialist fund managers, who make investment decisions on behalf of investors.
Private equity investment
Buying stakes in unlisted businesses as well as offering a range of local and international funds of funds
Private Equity is a type of equity and one of the asset classes consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor.
Private-equity firms are formed by investors who want to directly invest in other companies, rather than buying stock. They usually buy the whole company. Investors in private equity funds include some of the nation’s largest pension funds and endowments, as well as individual wealthy investors
It is the intent of the investor to generate social or environmental impact through investments.
Impact investing refers to investments made into companies, organisations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return. An example would be investing to impact the shortage in affordable housing and to providing more quality schooling. This type of investing makes a positive impact while also producing a positive return. To invest, you can do so via private equity, debt, fixed-income securities and more,