Investment scams have been on the rise in South Africa, often catching unsuspecting investors off-guard. But there are easily identifiable warning signs that will clearly expose ill-intentioned schemes.
The investment landscape in South Africa is vast, with a multitude of choices for investors. Often, the facts presented to potential investors offer only a partial view of an investment product’s dimensions for them to consider.
We’re all familiar with the barrage of highly emotive marketing campaigns associated with investment firms and their underlying products. Before being swooped away by glossy brochures and enticing value propositions, it is worth taking the time to appreciate the full picture of the investment product on offer and its suitability for you as potential investor.There has been a sharp rise in financial-related criminality in recent times with investment scams becoming a fast-growing (and profitable) ‘occupation’ for the wickedly inclined. This raises the stakes substantially for unsuspecting investors who do not necessarily have the correct tools or investment acumen to identify those investment products that are backed by ill intentions.
Unethical behaviour in this area has particularly far-reaching consequences for investors looking to grow and protect their wealth.
When it comes to investing for retirement, these savings are potentially the largest pool of money that investors will accrue throughout their lifetime. The decisions an individual makes during their working lifetime could have a dramatic impact on their financial outcomes at retirement. It could very well be the difference between retiring comfortably and having to make unpalatable lifestyle adjustments in retirement. The information that informs these investment decisions is therefore of critical importance.
Another challenge facing investors is the poor levels of transparency – at least historically – in SA's financial services industry. To some extent this is still the case today.
This story is from the 15 August 2019 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 15 August 2019 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
