The risks of div­i­dend in­come funds

Weekend Argus (Saturday Edition) - - GOODWINES -

In­vestors and fi­nan­cial ad­vis­ers as­sume that putting cash in a money mar­ket fund is like keep­ing it in a bank vault. But re­cent events have shown that you can­not be com­pla­cent about the risk.

Div­i­dend in­come funds are also seen as a low-risk place to keep cash, but most of them are highly com­pli­cated prod­ucts whose struc­tures are closely guarded se­crets. Both th­ese prod­ucts fall un­der non-eq­uity funds, and they come un­der the mag­ni­fy­ing glass in the lat­est edi­tion (the fourth quar­ter of 2009 is­sue) of Per­sonal Fi­nance mag­a­zine. In the lat­est is­sue, find out:

Ten things you need to know to know about in­come pro­tec­tion;

What ex­perts say about the “lifestag­ing” ap­proach to re­tire­ment;

Per­sonal Fi­nance mag­a­zine is the only pub­li­ca­tion of its kind in South Africa ded­i­cated to giv­ing you all the in­for­ma­tion you need – in lan­guage you can un­der­stand – to man­age your money wisely and grow your wealth. It is on sale now in book shops and re­tail­ers na­tion­wide for only R24.

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