Become an investor with only R1000
Even a small stake deals you into the market
WHEN you begin investing, it can be difficult to decide where to put your money. If you don’t have much to invest, the problem is exacerbated.
As Greg Strachan, vice-president of sales at Purple Group, says: “The first hurdle in investing is actually doing it — so start! Educate yourself on what is going on, and find an investment platform that allows you to start small and cut your teeth.”
We asked a few investment gurus to tell us how they would invest R1 000 and why.
And for those of you who may be wondering how you can buy quality shares when some are priced above R1 000, remember, there is always the option of buying fractional shares.
Kristia van Heerden, CEO at JustOneLap
I’ll be looking to index investments, which take all the legwork out of the investment process. Neither local nor global politics is filling me with optimism. My best option is to spread the risk.
I can split my R1 000 into three investments. I’ve been very curious about CoreShares’ new global property ETF, so I’ll probably put R400 in there. That gives me exposure to property and offshore exposure spread across different regions.
I’ll invest R300 locally into the CoreShares Equal Weighted 40. That basket offers a little property exposure, and any risk of a fall in individual share prices due to political instability is limited to 2.5% per share.
The rest will go into the Deutsche Bank x-tracker MSCI World ETF, also known as the DBX World. I’m a long-term investor, so I feel comfortable stocking up on equity.
Palesa Lengolo, investment educator at Palengo Holdings
The most cost-effective way to invest R1 000 a month would probably be through collective investment schemes like exchange-traded funds, for example Satrix.
My favourite in this case is Satrix 40, which tracks the performance of the JSE, and, like the market, is quite heavily weighted towards resources stocks, so this is where I would invest R1 000.
Carel Nolte, communications head, Purple Group
I invest in the companies I use in my daily life. So, if RMB is in the news for doing good stuff for the community via their initiatives in rowing (which I support), I buy RMB.
If I hear Sasol is lessening its support for the arts, I sell Sasol. Discovery is my medical aid, so I buy them.
Charles Savage, Purple Group CEO
I’m passionate about fintech — it’s the future. Fintech companies are revolutionising an industry and shaping a new world for our kids.
If I had R1 000 to invest, I’d put R200 each towards my five fintech picks: Naspers, Purple Group, FNB, Discovery and MTN.
Nolwandle Mthombeni, equity analyst at Mergence
I would choose a single exposure in equities as it is too small an amount to diversify meaningfully without incurring unnecessary costs.
I’d go for a company that is defensive through the cycle and has scope for significant growth in the medium to long term.
My choice would be Curro. While the share has already done well, I believe it’s been mostly premature as the company has yet to generate returns above its cost of capital.
Most of its growth is still to come as it fills up its schools, and, in addition, it has macro tailwinds with the current education crisis in the country.
Also consider consulting a financial adviser or planner.