Making cash work for you
PROPTRAX TEN: If you want exposure to the entire property sector this is perhaps one of the easiest and most cost-efficient ways to invest in the major players. The tracker fund is an equally weighted index portfolio, based on the Top 10 property companies on the JSE. You’ll need to open a stockbroking account and, yes, that means you have to be Fica’d. A management fee of 0,45% is charged. PROPERTY UNIT TRUSTS: Coronation Fund Managers, Stanlib and Catalyst Fund Managers are among the better known property unit trusts in the sector and are outperforming the run of the mill unit trust offerings. Unit trusts are well regulated, liquid (so you have access to your money within 24 hours) and competitive, as there are so many offerings out there. DIVIDEND PORTFOLIOS: If you don’t have access to the information, get some help. Follow the JustOneLap steps but also take into account some stocks have an obligation to continue their dividend policy (such as PPC, thanks to an empowerment deal technicality) or are perhaps not the best performing share on the JSE (think Hudaco) but will maintain their dividend policy. “Dividends are an incentive from the company to investors to keep holding its shares,” says Simon Brown. SATRIXDIVI: The Satrix Divi appeals to investors seeking yields, as dividends are paid four times a year. The current yield is only 3,12%. However, companies’ dividend yields grow on average by 20% a year: the longer you hold it, the higher your return will be. COMPOUNDING YOUR MATTRESS MONEY: The ultimate trick up an investor’s sleeve is reinvesting dividends and reaping the compounded benefit.