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Protection against Zim-style hyper-inflation

A Fin24 user wants to protect his investments against hyper-inflation. He writes:

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).

- Fin24

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Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.


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