Offshore investment

Having offshore exposure in your investment portfolio offers diversification and risk management, as you spread your investment across different countries, currencies and asset classes. You can invest offshore with ease through a unit trust that invests in offshore stocks.

How it works?

You can opt to use a rand-denominated offshore solution or invest directly offshore using foreign currency. Your financial adviser will be able to help you select the most suitable offshore option for you. Like any unit trust, offshore investments may provide flexibility but limited tax and estate planning benefits.

Can I withdraw from the investment?

You withdraw at any time but may be liable for capital gains tax on withdrawals.

Tax free investment account

You can also choose a tax free saving investment option. While it largely works the same as a standard unit trust, with this option you don't pay any tax on interest or dividends earned, and capital gains are tax free too. This essentially means you don't pay tax on the growth of your investment, making it a far more effective way to reach your goals if you are saving towards your children’s education or other medium to long-term goals.

How it works?

You can contribute a maximum of R36 000 per tax year (from 1 Feb to 31 March each year), and a maximum of R500 000 during your lifetime completely tax free. If you exceed these limits, you will be penalised 40% on contributions above the limits by the South African Revenue Service (SARS). These limitations apply across different accounts in aggregate and not separately.

Can I withdraw from the investment?

While you can withdraw funds from your tax-free investment, you cannot replace those funds. As such we do not recommend withdrawing from your tax free investment prematurely.

Unit trusts

A unit trust is a type of investment product that pools money from multiple investors to invest in a diversified portfolio of assets. These assets can include stocks, bonds, money market instruments, real estate, and other securities. The portfolio is managed by professional fund managers who make investment decisions on behalf of the investors. When you invest in a unit trust, you are essentially buying units or shares of the fund. It can be used to save for a deposit towards a house, pay for a holiday, or any savings goal you may have.

How it works?

Investors receive units in proportion to the amount of money they have invested. The value of the units will fluctuate based on changes in the value of the underlying assets. If the fund's assets perform well, the value of the units will generally increase. Conversely, poor performance of the assets can lead to a decrease in the unit value. Unit trusts offer several benefits, including professional management, diversification, and accessibility for individual investors who may not have the time or expertise to manage a diversified investment portfolio on their own.

Can I withdraw from the investment?

Yes. Unit trusts are generally open-ended, meaning that investors can buy or sell units directly from the fund at the prevailing net asset value.