Still make sense

It is not about the rand or pes­simism; it’s about sound fi­nan­cial plan­ning, writes

CityPress - - Business -

IN­TER­NA­TIONAL IN­VEST­MENT PORT­FO­LIOS The In­ter­na­tional In­vest­ment Port­fo­lio is avail­able to in­vestors with funds off­shore, with a min­i­mum in­vest­ment of £25 000 (R553 504). With a fee of only 0.75% a year, it is one of the most cost-ef­fec­tive op­tions for lo­cal in­vestors abroad.

South Africans can also in­vest in the port­fo­lio with rands via the Mar­riott First World Equity Feeder Fund, with a min­i­mum in­vest­ment of R500, or R300 a month. The to­tal cost is slightly higher at 1.5% a year.

IN­VEST OFF­SHORE WITH YOUR TAX-FREE SAV­INGS AC­COUNT The end of this month will be your last chance to take ad­van­tage of this year’s R30 000 limit in a taxfree sav­ings ac­count.

Cur­rently, the only way for South Africans to use their tax-free sav­ings ac­count to in­vest off­shore is through db X-track­ers – an ex­change-traded fund is­sued by Deutche Bank that in­vests in global indices with­out re­quir­ing the in­vestor to have an off­shore ac­count or a tax clear­ance cer­tifi­cate.

Db X-track­ers pro­vide in­dex­track­ing ex­po­sure to equity mar­kets in the US, the UK, Europe and Ja­pan, as well as a mix of lead­ing in­ter­na­tional mar­kets via the MSCI World In­dex, and are listed as ex­change-traded funds on the JSE.

They can be bought from a stock­bro­ker or through an in­vest­ment plan with a lump sum of R1 000, or a R300 monthly debit or­der.

Al­though the as­set man­age­ment fee varies from 0.7% to 0.9%, in­vestors us­ing the in­vest­ment plan plat­form pay an ad­di­tional 1% a year, bring­ing the to­tal costs closer to 2% a year.

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