Investing has been said to be a great way to “make your money work for you”. This is based on the premise that investments make more money over time than bank accounts or even bank savings accounts. While this is almost always true, investors need to take note of the risks associated with different types of investments. Here are a few of the best investments in South Africa in 2021.
Before we jump in, we need to ensure you have read our disclaimer. We are not financial advisors, nor do we offer any advice. The contents of this site and article are purely for information purposes.
3 of the Best Investments in South Africa
There are so many options for investors in 2021 that it is impossible to mention them all. It is also very difficult to choose one investment for everybody as everyone is different. But hopefully this article can give you some ideas to research and consider.
The Stock Market
The stock market both in South Africa and worldwide offer great opportunities for investors to gain returns over the long term. Investors can gain access to the stock market via stockbrokers. One of the top brokers in South Africa is Easy Equities.
Types of stock market investments:
- Shares – these are direct investments into a company. You will own a portion of a company and will thus get a return if the company grows in value and through profits distributed as dividends.
- ETFs – ETFs are groups of shares placed in a fund. These funds are easily available and allow investors to invest across multiple shares. This can give you a broader reach of the market.
Property & Easy Properties
Property is growing as a favourable investment class as the low-interest rates make it favourable for investors to buy rather than rent and even buy an investment property.
However, if buying an entire house sounds scary or unachievable you can invest in property with very little money through brokers like Easy Properties. Easy Properties allows users to buy fractional shares of properties for as little as R10. Read more about Easy Properties here.
Cryptocurrency is a highly debated topic when it comes to investing. This asset class has produced some unbelievable returns over the last few years and continues to do so in 2021. With more regulations and security measures being implemented, users can feel safe using the currency when working with registered brokers like Luno. Luno makes buying and investing in crypto through their mobile app.
Cryptocurrency is a very highly volatile and risky asset class; we do encourage you to do extensive research before you consider investing in crypto.
South Africa offers investors many options to invest their free cash in 2021. Whether you want to invest in property, the stock market, crypto or something we have not mentioned; you have the ability. It is a good idea to meet with a financial planner if you are uncertain of where to invest.