THE AS­SO­CI­A­TION

Finweek English Edition - - Golden Nest Egg -

for Sav­ings and In­vest­ment SA says South African in­vestors put R10bn into eq­uity funds for the 12 months to end-June but pumped R59,2bn into money mar­ket funds.

While in­vestors opt­ing to move into money mar­ket funds may per­ceive that to be a pru­dent ap­proach to pro­tect wealth, they of­ten don’t re­alise they’re in fact guilty of reck­less con­ser­vatism,” says Nico Coet­zee, head of sales at PPS In­vest­ments, the in­vest­ment arm of the Pro­fes­sional Prov­i­dent So­ci­ety. Coet­zee says by ig­nor­ing the stock mar­ket, in­vestors in money mar­ket funds over the first half of the year have al­ready lost out on the re­cent strong re­cov­ery. The JSE All-Share in­dex gained 8% in sec­ond quar­ter 2009 and al­most 38% since the mar­ket lows at the beginning of March. “Even the most pru­dent in­vestors should con­sider some form of eq­uity ex­po­sure. Con­ser­va­tive, low-risk funds of­fer in­vestors a bal­anced ap­proach to risk,” he says.

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