Finance And Investment Management Made Easy


Finance and investment management made easy

Investing seems to be a trend-able thing to do these days. And when it comes to finance everyone seems to be investing in something, putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

But granted finance is already tricky for most and when you add investment in the mix it may get even trickier. Therefore let’s see if we can make this finance and investment management a little bit easy by understanding when you invest your lump sum the various investment options available to you.

There’s Money Market
For investors this option tends to carry the lowest risk of all the vehicles in the unit trust sector as the management fees are considerably lower. And that your cash is readily accessible should you need it, but there are also downsides to this type of investment. It doesn’t yield high returns

The Tax Free Savings account
If you’ve an amount of R50 000 that you’d like to invest in then this maybe an option for you. As the name suggests you don’t pay any tax on this type of investment option and its purpose is to have your money accumulate over a period of at least five years.

To be used for a specific purpose, such as paying your children’s education fees you can also access your money fairly easy, should you need to.

However, it’s important for customers to familiarise themselves with the restriction stipulated by current legislation, since over contributions will result in you being penalised. Like being taxed and that interest rate are quite high and vary significantly.

A Unit Trust
If you’ve got R500 000 to spare one advisable investment vehicle for this amount is a unit trust. This is a collective investment scheme that gives ordinary investors access to their investments quite easily, and for lower fees.

Through this investment you need to know what your five year purpose is for investing the money. And that also with this type of investment it could expose you to shares alone or in a combination of shares, property and cash.


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