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

CityPress - - Business -

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.

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