Please advise on how to protect an investment fund against hyper-devaluation similar to what has happened in Zimbabwe?
Do investment funds offer such protection?
Simon Brown, a financial educator of JustOneLap, responds:
The best way to protect against a devaluation of the rand (be it modest or hyper) is essentially getting rands into another currency.
One can do this by moving money off-shore into money market accounts or even into foreign stock markets.
Locally, one could buy the Barclays Africa Group ETN on the rand/USD - NEWUSD.
Any rand weakness against the USD will see this ETN moving higher.
Alternatively, there are local funds which offer off-shore options in various methods (such as buying international stocks that are listed locally or even pure off-shore investments).
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