Investment Companies in South Africa as of 2022 in Aug
Investment Companies in South Africa – finding the best trustworthy investment company can be one of the most difficult tasks to accomplish.
There are many reasons why people choose to use investment companies, and, in this article, we go deeper on why one should consider investing their money in such entities.
There are any people who have a large lump sum of money and want to save money but grow it at the same time.
What exactly is investment management?
In simple terms, investment management companies invest money for their clients. This companies will choose the best investments available, from fast growing portfolios, stock and bonds.
The whole purpose of this to achieve the return on investment that the client needs at a level of risk they are comfortable with.
This firms opens new investment opportunities for their clients by taking a responsibility of creating an investment portfolio for their customers.
This companies which specialise in investment management focus on all different types of portfolios, some specialise in trusts, wealth, major corporations, and wealthy individuals.
Before choosing any Investment Companies in South Africa, here are (3) three management keys factors to be aware of.
Financial Goals Assessment
For anyone who wants to invest, the management firm will require important information such as how much money do you have, how much do you expect as a return on your investment and when do you need the money back.
The Potential Investments
Investments are different and can range from government bonds, shares in a new company or cash deposits.
It is the investment firm’s responsibility to calculate investment risks, they need to be aware of any opportunities and have an estimate of the return on all the options.
Design Investment Strategies
One of the important factors that all investment companies in South Africa does is to ensure that each client has an invest portfolio that match their financial goals.
Multiple portfolios of investments spread across many variable assets and reduces any risk, so in this regard, it is a simple rule, don’t put all your investments in one backet.
Investment companies usually manages investment funds for multiple investors all at the same time, they might put you funds in a private equity.
Except of this alone, there are other tasks that they do such as marketing, pricing, accounting, information technology etc.
For most of us, we all worry about this, how do they make money from managing your money, are they taking a cut off on what you invest?
Investment Firm Profits
With investment firms, the more profit they can make for their customers, the more their return as well. This means that if you grow, they grow.
The investment firm charges their customers a set management fee and take a percentage of the profits from the input.
Benefits of Investment
Independent board – every investment company has a board of directors whose task is to look after their clients’ interests.
Most of these boards operate independently from the fund manager and so they can exert pressure to keep running costs down and keep the manager on the right path.
You have a voice – As part of shareholders, your entitled to have an input on how your company is run. You can participate in shareholder meetings such as Annual General Meetings and ask questions.
Net Asset Values – Investment firms publish net asset values. This frequency usually depends on the ease with which a valuation exercise can happen. This is the same calculation used to work out the price of an open-ended fund.
List of Great Investment Companies in South Africa 2021
- Allan Gray
- IFM iTransact Fund Managers
- Prudential Inflation Plus
- ABSA Money Market Fund Read
- Investec Opportunity Fund
- Foord Balanced Fund
Do you have a lump sum of money and would like to invest for a period of fewer than 4 years?
Great, Allan Gray balanced fund is all you need to input your investment, With Allan Gray, you will well take the chance of market fluctuations.
Just in 2020, assets under management in the Allan Gray fund were valued at R141.8 billion.
The investment firm also provides offshore investment services to investors who want to venture into the global markets.
Coronation is an investment company founded in 1993 by a group of investment professionals.
Founded in 1993, coronation is a great investment company established by a group of investment professionals.
This investment firm is a dedicated asset management to deliver competitive returns for South African investors. Currently, the group manages around R570 billion worth of client assets.
Below is links to all great investment companies in South Africa.