Finances

4 best investments in South Africa

Find out which are the best investments available in the country! Make the most of your money! Keep reading to learn more!

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Make the best investment decisions for your finances

Investment Analysis
4 best investments in South Africa. Source: Adobe Stock

In the current world context, investing in unit shares may not be the best investments in South Africa.

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However, there are lucrative and safe options for those who do not want to expose themselves to market uncertainties. To know them, see the following post!

4 top investments for your portfolio

We consulted the best analysts in the market to gather the best investments for investors in South Africa.

In addition, we use the ChatGPT tool, an ultra-technological robot that uses artificial intelligence to answer complex questions. Our goal is to present low-risk investments.

In this way, these can be alternatives for beginners and experts in the business world. Next, learn how to multiply your money safely without making any effort.

Government of South Africa Treasury Bills

What do you do when you have debt and don’t have enough money to pay it off? Well, most people borrow money and pay it back with interest.

That’s exactly what governments do! Treasury Bills are one of the ways governments use to get money quickly. These are documents offered for public purchase.

Therefore, anyone with an account opened at a brokerage firm can acquire these certificates. These usually have a deadline.

Thus, after the stimulated time (from 1 day to 12 months), you receive the amount you paid to have these documents. However, this amount is returned with interest.

In fact, you can buy bonds with predetermined interest rates. So you can know in advance how much you will earn. The government guarantees this investment.

Money Market Funds (MMF)

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4 top investments for your portfolio. Source: Adobe Stock

There is a way to lend money to banks and public or private companies and profit from interest.

And that’s exactly what you’re doing when you allocate your money to Money Market Funds (MMF). These are funds lend money to several companies at once.

Thus, you can count on the diversification factor, greatly reducing the chances of losing money. To invest, you just need an account opened at a brokerage.

The only downside is that you need good money, like R1 million, to start investing. Below is a list of the top 10 biggest and best-known MMFs in South Africa:

  • Allan Gray Money Market Fund;
  • Investec Money Market Fund;
  • Absa Money Market Fund;
  • Old Mutual Money Market Fund;
  • Stanlib Money Market Fund;
  • Sanlam Money Market Fund;
  • Nedgroup Investments Money Market Fund;
  • PSG Money Market Fund;
  • Prudential Money Market Fund;
  • Anchor BCI Money Market Fund.
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Exchange-Traded Funds (ETFs)

For some experts, the best investments in South Africa are shares on the stock exchange. However, investing all your money in just one stock is not a good idea.

Especially when you don’t understand exactly what you’re doing. However, you can still use relatively safe ways to profit from the stock market.

One of the best ways to do this is to buy Exchange Traded Funds (ETFs) shares. These are bundles of stock in several companies sold as one.

The profits of many others in the group minimize the losses of some companies. Thus, you have great chances of profiting.

Some ETFs pay dividends. So you can count on money coming into your account every month, quarter, or semester.

Below is a list of the 10 most popular ETFs in South Africa:

  • Satrix 40 ETF;
  • NewFunds S&P GIVI South Africa ETF;
  • Coreshares Top 50 ETF;
  • Absa NewFunds MAPPS Growth ETF;
  • Sygnia Itrix MSCI World ETF;
  • Satrix Quality South Africa ETF;
  • Coreshares Proptrax Ten ETF;
  • Sygnia Itrix FTSE 100 ETF;
  • NewFunds ILBI ETF;
  • Satrix DIVI Plus ETF.

Real Estate Investment Trusts (REITs)

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Make the best investment decisions for your finances. Source: Adobe Stock

Rents are getting more and more expensive. However, we do not suggest you save money for years to buy homes.

You can start making money by renting homes and business premises today! As? Purchase of shares in Real Estate Investment Funds (REITs).

These real estate group shares manage hundreds or thousands of properties at once. When you buy shares of this type, you are entitled to receive part of the rent paid.

Therefore, the more shares you buy, the more money you will receive at each month’s end. To buy REIT shares, you need a brokerage account.

Diversity of properties can mitigate risk. However, this does not mean that you will receive profits every month. But, in general, these actions usually provide good gains.

10 most famous REITs in South Africa

  • Growthpoint Properties Limited (JSE: GRT);
  • Redefine Properties Limited (JSE: RDF);
  • NEPI Rockcastle PLC (JSE: NRP);
  • Resilient REIT Limited (JSE: RES);
  • Vukile Property Fund Limited (JSE: VKE);
  • Hyprop Investments Limited (JSE: HYP);
  • Emira Property Fund Limited (JSE: EMI);
  • Fortress REIT Limited (JSE: FFA);
  • Attacq Limited (JSE: ATT);
  • Investec Property Fund Limited (JSE: IPF).

Bottom line

If you desire to supplement your income, you can count on help from the federal government.

In fact, many programs help families financially in the most diverse situations.

To find out which benefits you can count on, see the list of all options in the following post!

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About the author  /  José Gonçalo

I started reading about finance only to find better options than savings. Since then, I have never stopped studying finance, and I believe that writing about it is the best way to help individuals feel fulfilled and have a healthy financial life. Today, I balance finance and medical school studies.

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