If you want to invest in the stock market but don’t have enough money each month to buy expensive shares, fractional investing may be the answer. It’s a cheap and easy way to invest, writes Neesa Moodley
fter fielding numerous calls from listeners on Gareth Cliff’s CliffCentral show, Anthea Gardner, managing partner at Cartesian Capital, realised there was a definite gap in the market for people who wanted to invest small amounts. As the managing partner at an asset management company, she brainstormed a few ideas with Cliff and came up with a new product called #Invest.
Gardner insists that it was fortuitous finding the EasyEquities trading platform, which allows fractional share investing and which was in the process of creating managed accounts through its Bundles offering.
“With #Invest, you’ll have access to a managed portfolio, share education resources, Cartesian Capital research and a monthly market update. Plus, you’ll be able to check in on your investments live on weekdays during The Gareth Cliff Show in The Money Shot,” she says.
Gardner says partnering with the EasyEquities platform allows #Invest to offer you a reduced cost of transacting.
“Typically, you would need to invest R1 million before an asset manager will handle your investment portfolio. We are introducing this offering to clients from just R100,” she says.
#Invest offers you four different investment portfolios:
1 Conservative income – this portfolio is invested entirely in bonds and is essentially aimed at preserving your capital. Gardner says it is well suited to someone who is investing or saving with a three- to 18-month timeline, and aims to offer returns higher than those you would earn from an ordinary bank savings account. 2 Stable (growth and income) – this portfolio offers you exposure to longer-dated bonds, which are more risky than short-dated bonds in the conservative income portfolio. “The typical investor here would be someone with five years to retirement or someone with a three- to five-year saving timeline,” Gardner says. 3 Growth (balanced) – this portfolio is essentially the same as a balanced fund, with 75% exposure to equities and 25% exposure to bonds. Gardner explains that investors get the stability of a bond portfolio, with exposure to blue chip stocks. 4 Aggressive Growth – this portfolio is a pure equity portfolio and includes stocks such as Aspen and Mediclinic, but also has exposure to smaller cap stocks to generate alpha returns.
What it will cost you
EasyEquities brokerage and statutory costs are 0.64%. In addition, #Invest will cost 0.85% to invest in the Conservative portfolio, 0.9% for the Stable, 1% for Growth and 1.25% for Aggressive Growth.