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Investment Planning (Local)


Unit Trusts

Unit trusts are portfolios of assets such as equities, bonds, cash and listed property, in which investors can buy units. This allows investors to spread their risk, whilst getting the benefits of professional fund management.

Other benefits include:

  • Easy and cost effective access to the equity, money, bond and listed property markets
  • Transparent pricing and performance: unit trust prices are published in the newspapers, reflecting the previous day's closing price. This allows you to determine the value of your investments on a daily basis.
  • Easy access to funds within 24 hours
  • Protection for investors via a strictly regulated industry


Exchange Traded Fund (ETF)

Exchange Traded Products (ETPs) include Exchange Traded Funds (ETFs) and Exchange Traded Notes (ETNs). ETPs are listed instruments that cost effectively pool investor funds and aim to replicate the performance of a market index or comply with a particular mandate.

Exchange Traded Products are similar to unit trusts, as they pool investor funds so that you can cost effectively access a large basket of underlying investment instruments. However, ETPs are passively managed, which means that they track a security, basket of securities or market index and no active investment calls are made.

Exchange Traded Funds track a wide range of instruments, including shares. Most ETFs are collective investment schemes (CISs) and are bound by CIS regulations.

Exchange Traded Notes track debt instruments only. They are not CISs but are regulated by the Johannesburg Stock Exchange (JSE).

Both ETFs and ETNs are listed on the JSE.



An endowment is a type of savings plan. It provides investors with full access to their money after a specific period (in this case five years) or when the policyholder dies.

In South Africa, endowment plans are taxed at reduced rates (compared to the typical tax rate of an individual in the highest income tax bracket).
It is important to remember that an endowment is a long-term commitment. To get the full benefit of this type of investment, you must remain invested for at least five years. After five years, you will be able to withdraw your money whenever you need to. When you do decide to withdraw your money, you won’t have to pay any further tax on your investment.

Flexible Investment Option

The Flexible Investment Option is designed to give you the freedom to tailor your investment to meet your objectives and risk strategy. It does not have any regulatory restrictions.

It allows you to diversify and minimise risk by blending a wide range of investment components. You can adjust your investment as your needs change.

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