Posted by: Chad | 2013/06/29 16:52
Good day, I trust you are well.
I'm a 23 year old male still living at home with my parents, so my expenses are very low. I have been working for just over a year now, and I have managed to save R60 000. I need some advice now on what to do with the money as it is sitting in a Nedbank just invest account. I'm wanting to invest in shares but not sure how to go about it and what shares to get. I'm wanting quite a high return so I could use it as a deposit on a property in 5 years' time.
I would really appreciate any helpful advice.
Posted by: Simon Brown | 2013/07/01 12:26
Five years is the absolute minimum time frame for investing
in the market and even with five year time frame the risk is a modest return.
Markets are volatile and the best way to manage that volatility is to give the
investment time to grow.
For somebody starting out investing I recommend Exchange
Traded Funds (ETFs) which are cheap, simple and track the market. With
R60k one could build a diverse portfolio of a couple of ETFs tracking the
general stock market (BBET40), property via PTXTEN and if you want some spice
there is a small cap ETF RMBMID and a number of international and commodity
ETFs (DBXUS tracks the US markets while NGPLY tracks the Rand Platinum price).
Search ETF on JustOneLap for details on model portfolios and the different ETFs
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