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A Fin24.com user asks:
I have invested R200 000 in the money market with Stanlib. I am very unhappy with the service and am looking for a bank which takes customer relations seriously.
I have retired from teaching with no pension, so I am unemployed. I am 57 years old. My husband is also retired, and earns a very good pension.
I do not need the income immediately, and from time to time I add a lump sum to this investment.
I am also married out of community of property. Is this the best place for my money? Please recommend a bank!
Dynamic Wealth responds:
Your financial position seems sound in that you do not need the income from the investment.
Under normal circumstances, investors in their late 50s should adopt a conservative approach. However, since you do not need the income now, you might consider taking on a bit more risk than sticking to money market investments only.
Money market funds could still be at the core of your diversified portfolio, but you could also include investments like listed property.
However, your investment should depend on your risk profile and retirement need. The following need to be taken into account when an adviser determines your risk profile:
Investment objective
An investor must determine his/her investment objective for the current, medium and long term. A financial adviser should construct investment strategies accordingly. The aim is to set limits on risk and return.
Investment constraints
Each person will have constraints when it comes to investment. Your investment strategy must take these constraints into account:
- Liquidity needs
- Time horizon
- Tax concerns
- Legal and regulatory factors
- Unique needs and preferences
Regarding money market funds, an impression exists (wrongly) that only banks provide these funds. Please find a table below, compiled by Moonstone, which delineates the money market funds available as well as the annual returns and costs charged by each fund.
Specialist interest fund
| Company |
Effect rate |
Initial charges |
Min inv amount |
Management cost |
| Dynamic Wealth |
12.68% |
0.0% |
R30 000.00 |
0.46% |
Money market funds
| Company |
Effect rate |
Initial charges |
Min inv amount |
Management cost |
| Old Mutual Unit Trust |
12.13% |
0.0% |
R25 000.00 |
0.57% |
| Cadiz |
12.03% |
0.0% |
R20 000.00 |
0.57% |
| Standard Bank |
11.89% |
0.0% |
R25 000.00 |
0.57% |
| Coronation |
11.89% |
0.0% |
R2 000.00 |
0.39% |
| Nedbank |
11.78% |
0.0% |
R25 000.00 |
0.57% |
| PSG |
11.78% |
0.0% |
R25 000.00 |
0.50% |
| Prudential |
11.77% |
0.0% |
R50 000.00 |
0.40% |
| Discovery |
11.77% |
0.0% |
R40 000.00 |
0.57% |
| ABSA |
11.74% |
0.4% |
R25 000.00 |
0.46% | f
Allan Gray |
11.71% |
0.0% |
R5 000.00 |
0.28% | f
Galaxy |
11.63% |
0.0% |
R10 000.00 |
0.57% | f
Metropolitan |
11.42% |
0.0% |
R10 000.00 |
0.46% | f
Glacier Class B |
11.19% |
0.0% |
R20 000.00 |
0.46% | f
- Dynamic Wealth is a leading provider of specialised financial services. The group is focused on providing wealth management to high net worth investors, both private and corporate. Contact Dynamic Wealth at 012 484 2000 or Dynamic.co.za.