For most taxpayers, the month of February is a time to reconsider their tax-deductible provisions for retirement. This usually entails contemplating one’s investment objectives and comparing them with the performance of your current investments. As many of us provide for our retirement (and some discretionary savings) through collective investment schemes (unit trusts), an analysis of the performance of these savings vehicles suffices from time to time.
Broadly, but not exclusively, there are three categories of unit trusts which allows, within the confines of the Pension Funds Act, for those saving for retirement to park their nest eggs. On the riskier side there are the multi-asset, high-equity funds which one can refer to as balanced type funds. They’re usually not shy to utilise fully their allowed 75% allocation to shares (or equities).
Moving to the less risky side of the equilibrium, we get the multi-asset, low equity funds which we can call defensive type funds. They’re more careful when it comes to the 75% allocation to shares and would usually not go that high, rather investing in more fixed-income-type of assets (such as bonds).
The third type of fund, which is more geared towards the absolute preservation of a retiree’s investment capital, is multi-asset income funds, which we’ll refer to as income-type funds. (This should not, however, be confused with the pure fixed-income type funds.) These unit trusts allocate a large proportion of their cash to fixed-income-type assets and aim to beat at least the effect of inflation.
Bu hikaye Finweek English dergisinin 18 February 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Finweek English dergisinin 18 February 2021 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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.
