With so many great investment companies in South Africa, it can be hard to decide where to put your hard-earned money. South Africa has a well-regulated financial system with extremely strict financial laws and regulations. This means as an investor you have a good amount of safety when investing in a registered company.
But with a lot of New and Hip investment coming out who should you go for? Should you go for the older, tried and tested model?
While we cannot tell you where to put you money, we certainly can give you so great information about these companies to help you make your own decision. (Read our Disclaimer)
What is an Investment Company?
An Investment company, also known as a Fund or Asset Manager, is a company where you can invest money in a number of different ways. The most common types of investing include:
- Unit Trusts
- Retirement Annuities
- Endowment Funds
- Tax Free Saving Investments
These companies are made up of departments full of specialist investors that you can entrust with your money. This gives you more time to relax and less worries about how or where to invest your money. This can be vital when investing for the long term, example retirement.
Each company has a number of products and will often assign you a financial advisor to help you work out your goals and pick the products that fit in with your goals.
The Investment Companies that have been around the Block (The Oldies)
Now we are using the term oldies in a good way. These companies have survived so much in their lifetime that their wealth of knowledge would be difficult to measure. They have many offices and advisors across the country making it easy to invest with them. They are brand names you know, have seen and maybe even love.
Probably one of the most well-known investment companies in South Africa. Allan Gray is known for its extraordinary performance through many years of operating. They were formed in 1973. They are situated all over South Africa with a HQ based in Cape Town.
Allan Gray say on their website that they are based in Africa but have Global expertise. This is great for investors who want some overseas exposure as they will have the expertise and knowledge to guide you.
Some of Allan Gray’s Popular Products:
- Allan Gray Equity Fund
- Allan Gray Balanced Fund
- Allan Gray Stable Fund
- Allan Gray Money Market Fund
Prudential Investment Managers
Known and advertised for their consistency, Prudential (According to their Website), boasts a consistently strong track record since 1994. They credit this to their single-minded focus on achieving excellence.
With an investment team that has over 400 years of collective experience, it is safe to say they know what they are doing.
Prudential helps its clients achieve their goals by consistently applying a prudent valuation-based investment philosophy.
Some of Prudential’s Popular Funds:
- Prudential Balanced Fund
- Prudential Dividend Maximiser Fund
- Prudential Equity Fund
- Prudential Inflation Plus Fund
Coronation Fund Managers
Known by their slogan “Trust is Earned”, Coronation Fund Managers prides itself in being an investment company that South Africans can trust. They formed in 1993 and have been based in SA ever since.
Their focus is on delivering competitive returns for South African Investors, which they do with approximately R570 Billion in assets under management.
The investment company also have strong offshore connections allowing investors to diversify offshore in other currencies and global funds.
Some of Coronations Funds:
- Balanced Plus Fund
- Strategic Income Fund
- Global Opportunities Fund
- Top 20 Fund
The New Kids on the Block (The Hippies)
While there is nothing wrong with being the new kid on the block it can be hard to make a name for yourself. And when you are like these “hippies” challenging the status quo, it can be a big task. But these companies have shown themselves to be a formidable competition to the oldies and have shown significant returns over their operating time.
Satrix launched its first ETF in 2000 and has since gone from strength to strength. Now offering its users the choice between ETFs and Exchange traded funds, they are revolutionising the industry giving more control to the user.
Satrix has a one of a kind, easy to use interface where its investors can register and invest in Unit Trusts, Retirement Annuities and more. Their slogan of “Own the Market” really speaks to how they think.
Some of Satrix’s popular ETFs and Unit Trusts:
- Satrix Top 40
- Satrix Indi
- Satrix DIVI
- Satrix Equally Weighted Top 40
- Satirx Momentum
10X Investments is another challenger of the status quo. They question the motives of the oldies and have completely changed things up. Their aim to help more South African’s retire comfortably.
They have significantly decreased the amount of fees they take in comparison to other investment managers. And yet they are still managing to achieve consistently high returns for their clients. As per their website data.
10X states on their website that High Fees can cost you 40% of your retirement and they have set out to change that.
Some of the 10X funds:
- High Equity
- Medium Equity
- Low Equity
So which Investment company in South Africa should you choose?
This is not something we can tell you. But with this information you should be starting to see which ones you resonate with.
A good idea can be to speak to a registered Independent Financial Advisor to get an idea of which companies will offer the products that best align with your specific goals.
What if I want to look at an Investment Company in South Africa we did not mention?
There are so many Investment Companies in South Africa that it would be impossible to name them all. We have only mentioned 5 out of the many that you can choose from.
You can definitely look at other companies we did not mention, just make sure they are registered FSPs with a FSP number as this ensures they are properly governed to handle your money.
Where do I find a Independent Financial Advisor?
If you are looking for a financial advisor, you need to find some you can trust. You can get recommendations from friends and family or a colleague at work.
Otherwise, you can fill in the form below and we can get a registered Financial Advisor to make contact with you to discuss you needs.