Investments for people in South Africa are available in a variety of different opportunities and the key to any good investing is to keep them as simple as possible. Balanced funds are something that investors in SA should look at. They are managed by most financial services groups and invest in stocks and shares. Therefore people are not only exposed to one segment of the market. They offer good value in more unstable financial times, especially for those who invest over the long term. For the past three years balanced funds in the SA investment industry have shown an average return of 12 percent.
For people looking at other investments in South Africa, shares are now at the cheapest level they have been in years. But older people need to be cautious and not invest more than 35 percent of their money in shares. They should rather invest in a fund that focuses on capital protection. People with a moderate risk profile are typically married with children who will be out of the house in a few years. They could consider funds where exposure to shares is between 55 and 75 per cent. Young people who are far from retirement can afford greater risk and could consider funds with strong exposure in the share market.
If you want to invest your money in a more practical way you can pay off extra on your mortgage bond. Paying more towards your mortgage bond each month is a valuable investment because interest is calculated daily and every little bit extra will reduce your overall bond. There are a few other things that can be done but we feel that with the current financial climate that this is the best simple advice for now. Stop by regularly as we publish more and more useful information to help people looking at different investments available to them in South Africa.