A unit trust is transparent, easy to understand and a convenient way to save for a specific need like education, supplement retirement savings or any other goal.
They use your money, (along with hundreds of other investors just like you) to invest in assets like shares, bonds and listed property.

Instead of you having to pick individual investments - which is expensive, requires specialised knowledge and much time -
a unit trust offers you exposure to a range of assets, which are selected and managed by investment professionals.
They watch the markets 24/7 and carefully manage the investment on your behalf.
There are many different types of funds to consider, all having different investment strategies and investing in different assets. Each fund has a specific mandate and risk profile and aims to achieve certain objectives.

It is an easy and convenient way to invest and grow your money.


How does a Unit Trust work?

Each fund is divided into units (the unit of unit trusts). You then own a number of units, depending on how much you have invested. The price of each of your units is based on the value of the total fund.
Over time, (and time is a key strategy in investing for wealth), these unit prices track the performance of your unit trust fund. They are determined on a daily basis, so you always know what they are worth.

Example: You invest R10 000 into a unit trust. You receive a number of units, based on that funds value when you invest.
If a unit is worth R 10 on that day - you will have 1,000 units.

As time passes, the unit value will rise and fall - depending upon the performance of the assets into which the fund managers invest.
Say, the unit price increases to R12, then your 1 000 units will grow by R2 000, to R12 000.
But, there is risk as the assets could fall in value, meaning the unit price will also reduce.
So, if the unit price decreases to R9, the value of 1 000 units will be R9 000.



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Risk and Reward

In order to grow your money you have to take some risk - as that offers the greatest potential of reward over time - along with using the value of compounding interest!
If you take to little risk with your money, the chances are it will not beat the inflation rate and you will never grow your wealth.

Every saving and investment product has different risks and returns, like how readily you can get your money when you need it, how fast your money will grow, and how safe your money will be.
There are also other risks to consider such as how the economy will perform, how the stock market will react to the economy over time and what inflation will be and these can affect your return.
However, there is no greater risk than not saving!


Why this Unit Trust?

Your investment risk will depend on the unit trust you choose. We can do a risk analysis for you, should you wish.
It will take time and requires a certain level of knowledge in investing.
Each unit trust is invested in a different combination of assets, and has a different risk rating.
But, in the interests of getting you started on the road to wealth quickly it is recommended you consider the MARKET PLUS fund into which to invest.

This unit trust lies around the middle of the risk spectrum, not taking too much (or too little) risk.
Just right for a 1st time investor!

This fund aims to maximise your long-term investment growth, at lower levels of risk than a fund only invested in shares.
Risk is an unavoidable feature of investing, so seeking higher long-term returns requires tolerance to short-term volatility in your fund value.
The value of your unit trust may go down as well as up, and is therefore not guaranteed.
However, with an investment term over at least 5-years and the correct investment strategy, a good return is generally achievable and probable.
More information on the risk and return profiles of the fund is available on the published fund fact sheets.

It has been a top quartile performer since launch in 2001!

The fund is suitable for investors:

  • who want to build up long-term capital outside of a retirement fund
  • require a somewhat aggressive capital growth portfolio
  • looking to preserve the purchasing power of their capital over the long term
  • with a time horizon of five years or longer.

    (It is not suitable to highly risk-averse investors.)

    R100,000 invested at launch in July 2001, would have grown to R1,252,500 as at end July

    Last update December 30, 2020

    .
    Not a return to ignore!

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    Remaining invested for the 5-year minimum recommended investment period is crucial to achieving the fund's objective. If you are not comfortable with this volatility, please talk to us.


    General Information

    Tax - Any income earned from your investment will be taxed according to your tax status and will form part of your taxable income in your annual tax return.
    Dividend income earned from shares has a withholding tax of 20%, which is paid over to SARS for you.

    When you sell any of your units, or if you switch from one Unit Trust to another, you’ll be subject to Capital Gains Tax. Although never a real problem unless you have a huge fund, it still is a factor to remember.
    The fund will advise you of any capital gain event.

    There is NO investment term - you can access your investment at any time, with 24hrs notice.

    There is NO initial or upfront fee fee! Other funds do charge these.
    Your full investment amount is invested to purchase your units.
    There are Investment Management charges and a Financial Advisor fee which are reflected in your quote.

    No penalties if you stop and restart your debit order and make contributions and withdrawals at any point in time.

    Minimum investment amount of a lump sum of R5 000 or debit order of R500 per month.

    You can cede your investment

    You cannot borrow from the investment.

    If you pass on - the investment is part of your estate when you die, and will be distributed in accordance with the instructions of your will.

    Investing in unit trusts has traditionally yielded good returns, offering you the opportunity to build real wealth.



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    Feel good because Unit Trusts are ...

    Well regulated - controlled by the FSCA (Financial Sector Conduct Authority and the Association of Collective Investments offering transparent fees, charges and investment performances.
    They are not separate legal personalities and can therefore not be declared insolvent.

    Low investment risk - managers spread your money across many investments, reducing the chances of you suddenly losing large amounts of money should the markets change.
    For example, if one of the companies in which you have invested suffers a severe setback, only a small percentage of your investment will be affected as it is spread across multiple companies.

    Good Communicators - you can access your statement Online or receive regular updates from your fund manager.
    You can also track the performance of your Unit Trust fund on a daily basis on investment websites or via the press.

    Yes, I want to INVEST IN A UNIT TRUST

    Please send me all the information I need to begin my plan.

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    Last update December 30, 2020

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