A Fin24 user wants to know what his daughter could do with a small amount she inherited from her grandmother. She writes:
My daughter inherited R2 000 from her deceased grandmother.
I know it's not a lot of money, but where can I invest it so that it will attain some growth?
I would also like to be able to add in extra money as and when I have it.
What about investing in Satrix?
Gustav Potgieter (Jnr) of Aurum Trust responds:
Investing the money is a good decision for your daughter's future.
Unfortunately, R2 000 is a bit low for a lump sum investment on most investment platforms.
Satrix is, however, a good alternative where you can also add additional amounts at a any stage.
There are several investment options on Satrix.
The investment options will depend on the term of the investment as well as your attitude towards risk.
A shorter investment horizon - three years or less - is usually better suited for lower risk funds, as you cannot afford too much market fluctuation in such a short period.
An investment of 5 years and more can afford a bit more risk and here a moderate risk option could be more beneficial.
The funds for the investment will, however, all depend on your attitude towards risk.
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