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Investing a small inheritance

Feb 13 2017 20:03

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.

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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