Many professionals agree that the best time to invest money is often when sentiment is poor, an approach known in the industry as “contrarian investing”. This type of approach means that investments with excellent long term potential, but whose values have fallen due to general short term negative sentiment, can be bought at attractive valuations. To many, it feels uncomfortable taking this “contrarian” approach but for those looking at investing for the long term, there are a wide range of global opportunities available.

When it comes down to choosing the right markets to invest in, past performance is not necessarily a guide to future performance. The income and value of certain investments can easily fall as well as rise and it is important for people, especially beginners to realise that an investor may not always get back the amount of money that was originally put in. Exchange rates and currencies all have effects in different ways but we stand by the advice that if you are looking for the best time to invest money in most markets, do it while it feels like the worst time.

Sanlam investments allow individuals and business to choose whether you want to allow your money to grow at a steady pace in a safe fund that offers guarantees or in a more aggressive higher risk type of fund that can offer some excellent growth and returns. Choosing the kind of fund that will suit you or your business will very much depend on how comfortable you feel with the level of risk that is involved. Risks can be influenced by different factors including things like how a portfolio is compressed from the different types of investments, the strategy of an investment manager or if there are any guaranteed returns.

Shares listed on the Johannesburg Stock Exchange or overseas stock exchanges, real estate and property, government bonds or money market funds, these are just a few examples of the area’s that a business or individual can invest in. All funds are managed funds which basically means that all investors’ and policy holders’ premiums get pooled and then invested on their behalf by a fund manager. All decisions are made only by this expert manager and investors need not get involved with detailed decisions related to classes or timing. If you are a business or individual investor looking for a company to help you manage your financial growth then be sure to give Sanlam investments a good look.

It’s never too late to begin investing in real estate or considering the returns available with getting involved in the property markets. Amongst opportunities for potential investors is overseas property investment. There are a lot of untapped property markets throughout the world which in the form of rental yields or short and medium long term capital growth can offer the investor some great returns. Countries such as Bulgaria, Croatia, Turkey and Hungary are a few examples that maybe worth considering for those interested in overseas property investment opportunities.

For an investor looking for a lower risk alternative to the stock and commodity markets, real estate may be the best option as the markets do not rise and fall rapidly. Bargains are difficult to find in rising property markets whereas in a market where values are falling getting property at good prices becomes much more likely.

Learning about strategies as well as trends in both the local and overseas property markets is a key to success and getting help from professionals is the ideal way to make sure any real estate investments you decide to go ahead with become successful and profitable.

Offshore Unit Trust Funds - Known as mutual funds everywhere else in the world but South Africa, offshore unit trust funds are the main generic investment product marketed to South Africans. For this reason many future articles within this website will deal exclusively with offshore unit trust funds.

Life Assurance Endowment Policies - Life assurance endowment policies are marketed in South Africa on a limited basis, mainly by South African life assurance companies with offshore operations, but a wide range of choice is available in offshore jurisdictions.

Property - Property is becoming an increasingly popular foreign investment.

Direct Securities Investment - These are direct investments into either bonds or shares.

Private Equity Investments - In the main private equity investment takes the form of South Africans either establishing an offshore company or buying shares as investment opportunities in an existing company or companies.

Arguments that South African’s are being unpatriotic by investing abroad have no foundation. The money is not lost to South Africa. Money invested offshore will, in the vast majority of instances, earn returns that will flow back into South Africa. Neither is the capital lost to South Africa.

The same applies to companies that invest abroad. If the majority of shareholders are in South Africa, there will be long-term benefits for the country as a whole as profits move back to local shareholders.

Many people believe that they need a sizeable amount of money to invest in foreign markets. This is not the case. You can invest as little as R200 a month in a local unit trust fund or life assurance endowment policy that invests the savings of investors in foreign countries. The investment options open to you however increase rapidly when you have larger sums of money to invest. The issue is to know which foreign investments are best for the amount of money you have available.

If you are considering offshore investments, the return on your investing (income such as interest or dividends) would not be the primary consideration. The intention would be to lower the risk of having all your investments in one country (or the wrong country – a country whose currency is weak or has a low value relative to other countries) by transferring your assets to another, “safer” country.

The SARB has, however, stipulated that two forms must be completed by South African investors that confirm that all income tax has been paid and nothing is outstanding before they can move money abroad to make investments in foreign assets.

Do not give money to just anybody to invest abroad for you. First do the necessary research yourself and then talk to expert investors. Only then should you consider making a foreign investment. If in doubt, consult an expert before deciding to jump head first into offshore investments.