Small Investments, Biggest Returns

You don’t need to be a high roller to start building a fortune. These five investments prove that a little can still go a long way. BY

- Kieran Legg

Invest, invest, invest! It’s a mantra you’ve heard recited by finance experts across the globe. But for all intents and purposes, they may as well be speaking another language. In the midst of a never-ending economic crunch, there’s barely enough money to keep a roof over your head and food on the table. And those crumpled notes left over at the end of the month – which fine financial institution would even want those? Turns out, quite a few of them do. Small investments are turning into a big trend, with companies offering more and more avenues for guys like you and me to go from surviving to thriving in a few simple steps. We tapped the experts, stared at spreadsheets, and crunched the numbers to find the five best ways to turn your leftovers into future wealth:

1/ GO SMALL

HIGH RISK / LONG-TERM

“Investment returns are like cake,” begins AlphaWealth’s Keith McLachlan. “The more people you share them with, the smaller the slice you get to eat.” South Africa’s so-called Top 40 companies are the biggest investment targets for anyone looking for a safe, predictable place to cultivate a profit.

These are the largest businesses, corporate monoliths with a multinational presence and access to troves of precious resources. But because everyone has their forks up for a slice, their returns tend to be lower than the rest of the market. When you’re focusing on the cream of the crop, you’re missing out on the 360-plus other companies also listed on the JSE. “That’s 90% of the potential market you could invest in,” adds McLachlan.