• Choose the type of investment you want to make

No two investments are the same so you need to decide what you want to get out of your capital: are you looking to grow your capital with shares which have increasing prices? Or are you looking for shares which will pay high dividends and create an income for yourself? Essentially, the choice you have to make is between growth and income.

• Growth of share prices is caused by a variety of factors. However, the price of shares can plummet just as quickly as they rise. For example, a company could introduce new products, technologies and services that cause excitement and cause the share price to increase; but if the technology goes wrong the share price can quickly decline.
• To work out the income offered by the share you need to conduct significant research into the terms of the agreement.

• Understand that you are taking a risk with your money

There is no such thing as a risk-free investment or a sure-fire winner. The prices of shares and the income generated from them can go up, but can also go down. The past performance of the shares is not always a good indicator of future performance. All investments should be approached with this knowledge in mind. That being said, investing in shares can be very rewarding and the greater the risk often means the greater the reward.

Before you buy shares, you need to choose the level of risk that you are comfortable with – would you prefer shares with lees risk and lower returns, or higher risk investments that have the potential of providing higher returns?

• Understand how the company you invest in makes its profits

Companies listed on the stock market make their money from a range of business practices, both retail and service related. Make sure you know how the company you invest in makes its money so you can see if the sector id performing well in general. Consider visiting a local branch of the company to find out more about them and how they are doing. The more informed you are, the better your ability to make wise investment decisions.

As a share-holder, you are actually a part owner of the company. This means you need to know who and what you are trusting with your money. You can review the company’s annual report to see if you like what they say and see how the business has performed in the past and where it is going in the future. These reports can often be accessed online.

It is also worth keeping an eye on the company directors’ dealings – if they’re buying shares in the company it’s a good sign that the company is doing well; if they’re selling shares this shows a lack of confidence in where the business is going.

• Watch the numbers

Keep yourself up to date on the company’s financial indicators as well as the general market performance. Make sure you know which sector the company is in so you can check up on it. Look for changes in the share price and the share percentage price change.

• Don’t stick to one company

Investing in a range of companies helps to reduce the level of risk you put yourself at. If you put all your money into one company that goes bust, there goes all your money! If you diversify into different sectors you also reduce your overall risk. At the same time, it’s best not to invest too little into too many companies. The best thing to do is to choose sectors that are doing well and invest you money in successful companies in these sectors.

About RSA Retail Bonds

RSA Retail Bonds are issued by the government’s National Treasury as a way of financing the budget deficit of the government. Retail Bonds are one of the various types of financial services and investment opportunities that are used by personal investors, brokers, pension funds, banks, as well as foreign investors. RSA Retail Bonds are under the responsibility of the Asset and Liability Management sector of South Africa’s National Treasury. The Liability Management unit of this department is charged with managing the liquidity needs of the government.

It was in the 2003/2004 Budget Review that the Minister of Finance declared that South Africa’s National Treasury would introduce new retail bond securities to target a new source of funding for the government, to encourage the general public to save their money, and to increase the diversity of the market’s financial instruments.

There are two types of RSA Retail Bonds: RSA Inflation Linked Retail Savings Bonds and RSA Fixed Rate Retail Savings Bonds. Each of these RSA Retail Bonds are geared to making it simple and accessible for the general public to earn market-related, secure returns on the money they choose to invest. The RSA Inflation Linked Retail Savings Bonds will mature after 3 years, 5 years or 10 years; and the RSA Fixed Rate Retail Savings Bonds have a maturity of 2 years, 3 years, or 5 years.

Who is eligible for RSA retail bonds?

• You must be a permanent resident of South Africa.
• You must have a valid South African identification document.’
• You must have a South African bank account.
• If you are under the age of 18, you must receive consent from your parents in writing before investing (unless you have been granted majority status or you are married).

Now what you have the answer to the question “What are RSA Retail Bonds”, you may want to know: “How do I invest in an RSA Retail bond?” Simply put, there are three basic steps in the procedure; first, you need to register your relevant details at the National Treasury, then you can select the bond and maturity of your choice and apply for the retail bond. Lastly, you will pay for the accepted application.

1. 1.       Register your details

To start the application process for your RSA Retail Bond, you can go directly to the National Treasury at 240 Vermeulen Street, Cnr Andries and Vermeulen Streets, Pretoria, 0002 or call the department on (012) 315 5888. Alternatively, you can visit any South African Post Office Branch, or the RSA Retail Bonds website (www.rsaretailbonds.gov.za). However, if you are under the age of 18 and have not been granted majority status you cannot apply electronically on the website as parental consent is required in writing for you to apply. After the registration process, you will be given an investor number which can be used as a reference when you make payments to your RSA Retail Bond bank account.

1. 2.       Apply and select the bond and maturity

Like the registration process, there are a number of places you can select the bond type and maturity:

• Any Pick ‘n Pay branch
• The RSA Retail Bonds website (www.rsaretailbonds.gov.za)
• Any South African Post Office Branch
• You can also do directly to the National Treasury (240 Vermeulen Street, Cnr Andries and Vermeulen Streets, Pretoria, 0002) or give them a call on (012) 315 5888.

1. 3.       Pay for your RSA Retail Savings Bond

You can make a payment:

• At any Pick ‘n Pay Branch
• Via internet banking
• Through a direct deposit at the bank
• At any South African Post Office Branch.

If you choose to pay by cheque, the cheque must be made out to the place of payment. In other words, if you paid by cheque at Pick ‘n Pay, you must make the cheque out to Pick ‘n Pay.

In South Africa, there are more unit trusts (nearly 1000) than there are shares on the Johannesburg Stock Exchange. This makes the South African stock and investment environment a complex one. It is the role of Symmetry Multi-Manager to make this confusing environment more accessible by offering a range of funds to suit any types of investor.

What does Symmetry Multi-Manager do?

Rather than placing investment in individual shares, the top asset managers at Symmetry Multi-Manager make the best investment choices for their relevant clients, meaning that clients get the benefit of having multiple asset managers making the right decisions for them. It is up to Symmetry Multi-Manager to conduct extensive research into the individual strengths, performance, philosophy and strategy of asset managers. Symmetry Multi-Manager investments therefore carry lower risk than other investment options.

What funds are offered by Symmetry Multi-Manager?

There are two categories of fund available to individuals: Life Funds and Unit Trusts. Both of these types of investments are suitable across the risk spectrum but there are minor differences between the two so it is worth contacting a financial adviser to see which option is best suited to your circumstances.

Why Symmetry Multi-Manager?

Although Symmetry Multi-Manager is a relatively small firm, they are still able to offer advantages that one can usually only find in big corporations, such as:

• Up to the minute administration and data technology
• A comprehensive management system for various portfolios
• Customised software for monitoring purposes, tracking bond, absolute, international, equity and money market solutions.
• Clients benefit from thorough manager research conducted by Symmetry Multi-Manager. In fact, over 10 000 hours per year is spent by the investment team on manger research. This is a way of ensuring that the right manager decisions are made.
• Symmetry Multi-Manager was the first company of its kind to take home an ASISA/Personal Finance Raging Bull Award. For over five years Symmetry Multi-Manager have also won the Best in Sector for the Defensive Fund of Funds award from Micropal; and can boast 7 Standard & Poor’s/Financial Mail awards given for the best risk-adjusted returns in different categories.
• Every single decision made about any investment is managed by a highly qualified and experienced team of professionals specialising in investment solution.
• Symmetry Multi-Manager is able to offer comprehensive solutions as the company is part of the Old mutual groups, allowing them access to other resources and back-office systems. This allows the company to focus on profitable returns as costs and processes are streamlined through the Old Mutual systems.

Ultimately, what Symmetry Multi-Manager executives see as the factor that separates them from the competition is their staff. The company specifically chooses to employ managers who have different strategies and styles when it comes to investment. This ensures for well-though out investment decisions and decreases the risk of Symmetry Multi-Manager funds and also reduces the dependence of investments on the current market conditions. In fact, the team is so confident in the performance of the investments they make on behalf of clients that each investment team member invests their own personal money in the same portfolios selected for their clients.

Contacting Symmetry Multi-Manager

To take advantage of the investment opportunities offered by Symmetry Multi-Manager, you can find the company at Mutual Park, Jan Smuts Drive, Pinelands 7405. Alternatively, give them a call on +27 (0)21 509 6566, fax on 27 (0)21 503 4079, or shoot them an email on symmclientquery@symmetry.co.za.

What is a unit trust?

Unit trusts allow people to pool their money to invest in low-risk, expensive shares on the Johannesburg Stock Exchange.  Known as blue chip shares, these shares are usually almost impossible for individuals to get their hands on because they are in demand and are very expensive as a result. However, if you take out a unit trust in these blue chip shares, the cost is shared among a large number of investors who pool the money that they have available.

How does a unit trust work?

The money you choose to invest is entrusted to a unit trust management company. The fund manager will need a minimum amount (about R100 to R500) each month. The management company will buy JSE shares on the investors’ behalf, meaning that you don’t need to have any knowledge of the stock exchange if you are considering investing in unit trusts. The company combines the shares in a portfolio and divides it into a number of units; these units will be distributed to each investor according to how much money each investor contributed.

What are the benefits of having a unit trust?

• One of the most significant advantages of unit trusts is their accessibility as people have the opportunity to participate on the JSE regardless of qualifications, age or occupation.
• Because you is entrusting their money to a manager, you doesn’t need any knowledge about the stock exchange and economic market. Rather, expert analysts will invest on your behalf and ensure that you get maximum returns for your investment.
• Unit trusts are one of the best saving options to beat the inflation rate because the compound growth of the investments remain relatively stable, regardless of how the inflation rate is playing up.
• When you take out a unit trust you won’t have to compete with SARS to get your earnings. The dividends income on unit trusts is tax free, and capital growth is also usually free from tax.
• You have direct access to your money invested in a unit trust and the management company can sell you shares immediately upon written instruction. This means that unit trusts can act as an emergency source of funds if necessary; but you are also able to keep your unit trust for as long as you want as you are not committed to a certain investment period.
• Unit trusts are offered on flexible terms, allowing you to change between investing regular monthly payments and investing a lump sum. You can also decrease or increase your payments according to your specific needs.

Hints and tips for investing in unit trusts

• Remember that unit trusts are more effective as long term investments. Most people would suggest that you keep it for 3 to 5 years so that you can let the investment mature. The money will grow slowly, but you will get more out of it than if you had the money sitting in a savings account earning minimal interest.
• Growth or value funds usually show decent return over time.
• There are a number of documents you will need to bring with you when you approach a management institution. These include:  a certified proof of address and proof of identity, bank account details and other such information.
• Instead of approaching a financial advisor, you can cut out the middle man by registering online as most banks have direct investment unit trust options.

These accounts are Nedbank’s newest accounts and they offer their members the opportunity to make the most of their money. So lets examine exactly what Nedbank is offering their customers with these accounts.

The Nedbank Justinvest account is a money market investment account that offers its customers a competitive interest rate and short-term accessibility. This means that should you wish to access your money, there is no waiting period, but rather you can access your funds within 24 hours. However why would you want to when the longer you leave the money in the account, the more money you earn.

If you are looking to invest your money your money into after the sale unit trusts, share, property or something similar, then this is the type of account for you as it allows you the time to make the right investment decision for you. Alternatively, if you are looking to save money for a rainy day, for your child’s education, or a holiday abroad, then this is the perfect opportunity for you. The only thing that you will need to investigate further is the tax implication that you may be liable for.

So now that I have sparked your interest, lets take a look at the features of this type of account offers it holders and what is required to open this account:

1. Should you wish to invest in this type of account, you will be required to pay a minimum deposit of R5000.
2. Should you wish to add more money in to the account, you will be allowed to make deposits of R500 or more.
3. You will be open to fantastic interest rates and these rates will be tiered according to the balance of funds in the account.
4. Should you wish to withdraw the funds for any reason, you will only be required to wait 24 hours in order to obtain the cash.
5. Free monthly stop orders can be set up, however these can only  be done from a Nedbank cheque or savings account with the minimum stop order amount being R500.
6.  Due to the fluctuations of the interest rates, your interest will be calculated daily and paid monthly.
7. Should you make a number of cash deposits in to the account in a given month, you will only be charged on the fifth payment, or if the deposit exceeds R5000.

This really is a great opportunity to make money by simply putting some money in to the account.

The JustSave Account is similar to the JustInvest account in that it allows the account holder the opportunity to save money by means of earning money through competitive interest rates. Again like the Invest account, you will have access to your funds whenever you like. Basically Nedbank is paying you to save your money with them. So now you may be wondering how this works, and if you currently bank with Nedbank and have a transactional account, then you can set up an internal stop order with the bank to deposit money in to your JustSave account on your behalf.

What is even more is that Nedbank will not charge you for this stop order and will place an additional R2 for every stop order credit. Like the JustInvest account, the interest rates are tiered and this means that the more you save, the more interest you will earn.  In addition to this, your capital is guaranteed which means that you will always get out more than what you put in.

If you are now interested in the Justinvest Nedbank investment and Savings Account called JustSave, then why not contact Nedbank and get some more information about what great benefits you can receive by opening one of the two accounts.

Sharenet aim to help you learn to grow your money through investment decisions that are sound. For this, the offer a stock market course through their Sharenet College. This course is for people who are new to the stock market or for those who are looking for a refresher course. It starts with an introduction to the basic investment principles, and then will with the help of a professional asset manager, provide you with the guidance to make the best investments that you can.

Another one of the Sharenet tools that will teach you how to invest money in South African shares, is the software that they teach you to utilise to the best effect. The software such as Ambibroker, Market Tracker, and Cycletrends, will help you make predictions in the market and provide you will the skills to map out the market. Another software programme that Sharenet will provide you with the training to use to best effect is Quickstream. This programme provides the user to real time graphs, news, and other important information that will keep you up to date with what is happening in the market so that you can use it to invest more wisely.

One of the best services that Sharenet offers you is that they do not leave out in the dark once they have provided you with tools to get started. Their premium service provides you with information, such as consensus forecasts, financials, and live price tools that you can use to further you investments. These are all available on their database that as a premium service member you will have access to. Sharenet additionally provides you with online trading services. This will therefore allow you to trade online as well as monitor your profile.

If your interest in trading and investing in the stock market is now sparked, and you are wondering about the cost involved with getting the training and services provided by Sharenet then here is a simple breakdown.

1. Stock exchange course: R4,999.00
2. Technical analysis package: R3,700.00
3. Platinum package: R7,999.00

Although this may seem like a lot of money to shell out initially, then take a moment to think about this. If you are interesting in trading in the stock market and shares and decide to do so without any sort of training, then the chances that you will make sound investments are slim. As a result, you could end up placing a lot of money in a number of shares without the correct information. This could result in you losing all of you money invested. If you however take a course through Sharenet, you can enter the stock market with a sound understanding of what is happening and therefore make investments that could leave you sitting pretty with a lot money in your bank account. It seems like a no brainer to me.

Should you however wish to enter the stock market and are not interested in doing the work yourself, then you should contact an investment bank such as Investec who have brokers that will trade for you. This way you know that you money is in good hands and there is no pressure on you to put in a lot of work, all you have to do is put in your money.

If you are now wondering how you as an individual can invest with Satrix then all you need is either R1000 as a lump sum that is paid up front, or R300 to be paid to Satrix monthly. As Satrix mention on their website (www.satrix.co.za), “In the past, it took a wealthy man to own the top shares on the JSE”, this however is no longer the case as you now have a partner with over a decade of experience to help you on your journey.  Satrix is therefore a sort of security blanket that keeps you protected and provides you with sound investment strategies to help you grow your money from strength to strength. How it works is that they will buy you an investment portfolio of some of the top shares on the JSE. This enables them to spread your risk and in the long term grow your profits for a very small investment amount.

There are also two ways as an individual that you can invest in Satrix:

1. Stockbrokers

A stockbroker is a registered member of the JSE and therefore has the ability to buy or sell through the JSE trading system. This means that if you use a stock broker, they can purchase and sell shares on your behalf. What is more is that they will always try and find a sell order for Satrix securities in the market which can be matched by your buy order.

If you have no idea what I am talking about then let me explain it to you in layman’s terms. For example, if your broker becomes aware of a share on the market that he thinks that  is going to gain value, he will try and sell some of your shares in something else in order to make you more money in the share that is about to take off. Satrix additionally have commissioned official market makers who can provide liquidity to the market for Satrix securities. This means that Satrix is always looking out for your interests and will do everything in their power to turn your initial R1000 into much, much more.   The only downside to this type of investment plan is that you will be required to pay a minimum fee and monthly fee to the broker you choose.

1. Satrix investment plan

The Satrix investment plan is a secure way of making some money from a very low investment. All you have to do is visit the Satrix website, download the application form, follow a couple of other steps that include getting FICA accreditation, and then you are on your way. By investing in a Satrix investment plan you will be able to personally manage your investments, and all via the internet. You can swop from one Satrix stock to another and also make further investments. This is your opportunity for you to personally “Own the market” should you be able to read the market successfully.

It really is that simple. All you have to do is take a look at their website, see what they have to offer and get on your way to making a lot of money. Who could ask for more?

There are so many variables when it comes to investment:

• How much money will I put down?
• What are the current financial or investment trends?
• Should I invest local or offshore?
• Which investment houses have a good reputation and who can I trust?
• What investment vehicle should I be using?

It is important to have a goal for your investment, a reason as to why you want the investment in the first place. The goal or desired outcome will have a large influence in terms of what your investment will be.

Here are a few examples of goals:

• I want to set up an education fund for my children;
• I want to make sure I have enough for when I retire;
• I have some spare cash lying around and want to make it work for me;
• My business is taking off and I want to set some money aside to cover for the bad times;

Your goal or reason for investing will determine the vehicle you make use of.

At this point it makes sense to consult about what investment vehicle you choose. Making use of a broker is never a bad option but also be sure to consult any family or friends who work in the financial profession, be they accountants, traders etc.

Having a sounding board will ensure that you are asked the right questions and then are able to make a more informed decision as to what you want to achieve and how you are going to get there.

In addition, you will also get a feel for what type of investor you are by understanding your risk profile. Do you like to take risks, or would you rather sit back and let your money accumulate over time? By speaking with a financial consultant, broker or specialist, you will be able to ascertain this.

Now that you have consulted and realized that you want to go large and investing for huge profits is your goal, you need to be aware of the pros and cons:

• Pros

• • By taking the risk your returns will be far greater than lower risk profiles;
  • The more you invest, the larger your return will be;
  • You do not have to tie your money in for too long to see a great return;
  • If you catch the markets at a downward point, you stand to gain massively when it spikes up;

• Cons
  • Because you stand to gain a large return, you are also at risk of losing large;
  • Your return is dependent on market sentiment and therefore at huge risk;
  • If you get in at the wrong time, even if the market is low, then you may lose initially before you see any upturn;

Depending on your risk profile will depend on whether you will be investing for huge profits or not. At the end of the day, you want your money to work for you, not disappear before your very eyes.

Keep in mind that if you want to make money investing in companies, researching the company is important. You should make appointments with the managers and discuss everything you need to. Talk to them about past financial situations and future ideas. You need to know where the company came from and where it wants to head to. These are the two things that built and could keep the enterprise going strong, especially though another depression.

Find out everything you need to know when it comes to investing in a company. You don’t want to invest in a company only to find out 6 months down the line that there is not more money to keep the doors open. This is a long-term investment and when it is done properly, you will find that you and your family can live comfortably. You want to go out there and look for the winners. Take a moment to research the many companies around the country and see who you will be able to invest in.

Those who use Bidwest investments will watch the finances of all the countries involved, and also the technological, population and governmental changes and this will predict how others will be investing in the currencies. If you would like to get involved in these foreign exchange currencies it is advisable that you get help from a professional involved in currency exchange that will be able to help you with all of your payment needs. You will find that Bidvest Bank will have the tools needed to simplify the process of foreign exchange and also the business dealing that will benefit your account. You should locate a Bidwest branch today if you would like to acquire more information about their foreign exchange currency services.

Making sure that you learn about foreign exchange is beneficial when it comes to international trading and also money transfers. Make sure you always read financial news, learn and interact in forums; sign up for the forex courses and get any information from your financial consultant working a Bidvest Bank. If you are looking for ways to make money, consider their investment opportunitys and do what is required if you would like to get anywhere.