Our quarterly insights on the investment industry
The Nedgroup Investments Stable Fund recently reached its seven-year anniversary.
The gap between the fund’s returns and its peer group has widened particularly over the past three years.
In our last issue we discussed the National Treasury’s plans to introduce a tax-free savings account (TFSA) in March this year; wherein one can contribute up to R 30 000 per year and up to a lifetime contribution of R 500 000. Because the savings invested in a TFSA will not be taxed, it provides a great incentive to save, but where will it fit into your current savings plan and how much will you actually save?
In recent years there have been numerous articles on lowering investment costs by means of Exchange Traded Funds (ETFs) and other index-tracker portfolios. Despite all the noise South African investors have not followed the international trends of implementing large portions of their savings using these types of portfolios.
If we page back in history, it is evident that the price of oil tends to undergo a significant correction approximately every four years. It is not so much these historic occurrences that are of interest, but the behaviour of the oil market during these price fluctuations.
At this time of the year, the media and financial publications are full of economic forecasts. These are often well-researched, fascinating to read and draw insightful conclusions. However, it is more useful for investors to set clear goals, begin saving enough diligently and regularly into an appropriate, fairly priced fund and then having the discipline to stick to the plan...
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