Satrix for me
I HAVE GREAT respect for Vic de Klerk’s knowledge and experience as an investor and I read his column regularly. In addition to Finweek, I read Sake in Die Burger every day, and also Personal Finance quarterly.
I’ve since learned – as De Klerk apparently also has – that it’s better to invest in Satrix than in unit trusts. The costs are much lower and the performances of unit trusts fluctuate a great deal, because of changes in personnel or policy – even if you stay with a (former) winner.
I agree that people should invest in ITX EURO 50 rather than in ITX FT 100. I’m also wary of resources shares. That’s why I avoid Satrix Resi. When Satrix 40 was introduced, I started investing in it and, with the arrival of Satrix Indi and Fini, in them too.
The latest issue of Personal Finance reports that the returns on the Satrix funds were as follows (six and 12 months): 17,28 and 40,31; Indi – 32,33 and 40,36; Fini – 25,75 and 36,01; Resi – 7,17; Swix – 19,48. I want high as well as steady returns. Your argument against resources shares makes it preferable to invest in Satrix Swix rather than in Satrix 40 – even though you previously described Swix as an unnecessary fund. I also consider Satrix Fini as vulnerable, because of possible future Government policy, and changeable, due to periodic interest rate adjustments.
My New Year’s resolution is therefore to channel my money to Satrix Indi and Swix in future rather than to invest in Satrix 40 and Fini.