A simple way to maximise on market exposure
Our Unit Trusts offer greater diversification and minimal risks, while providing added peace of mind as they are part of a well-regulated industry. Whether the plan is to save for a short-term or long-term goal, we can help you attain your investment objectives.
What is it?
A Unit Trust pools money and invests in shares, bonds, money market instruments and other investments. The pool is then divided into equal portions called units. Each unit has a price or Net Asset Value (NAV) based on the value of all the assets held in the fund. Your units increase in value as the fund’s overall performance improves.
Funds are grouped by where they sit - South Africa, Worldwide, Global or Regional. South African funds, for example, must have at least 70% of assets invested in South Africa at all times.
The second tier refers to the type of investments you might find in the fund. The rules are very specific to ensure that you know what you’re getting into:
• Equity Portfolios: These hold a minimum of 80% of the portfolios in equities.
• Multi-Asset Portfolios: These funds invest in a combination of assets including equity, bonds, property and cash. These portfolios may be aggressively managed with assets being shifted according to market conditions or they may have low levels of equity exposure and be more conservative.
• Interest Bearing: Money Market Portfolios - These funds target interest income as their goal and often aim to preserve the portfolio’s capital over an agreed term and provide immediate access to your money.
• Real Estate Portfolios: These funds invest in listed property shares, and real estate.
Tier three gets more specific about the detail of the types of investments in the specific area of focus. Equity funds, for example, have different categories depending on their focus that can include General Equity, Large Cap, Resources and Financials.
What can it do for me?
Unit Trusts provide a low-cost, easy-to-understand way of taking part in the stock market. The funds are managed by experts and generally offer sound returns. However, no fund is without some element of risk, so it is important that you understand costs related to the trust you choose. We recommend you speak to a broker to ensure you get a fair deal. Some benefits include:
What does it cost?
Unit Trusts are designed for earners across the investment landscape. You can choose to invest in lump sums, monthly debit orders, or a combination of the two. The minimum required amount depends on the fund selected. We suggest reaching out to a financial adviser for guidance in this regard. Remember to only invest what you can afford in relation to what you want to achieve.
Initial lump sum investment
Initial administration fees (lump Sum)
Adviser 0 - 3.45% (@ 15% VAT)
Annual administration fees
Adviser 0 - 1.15%
There is no performance fee.
• You are taxed on interest received from your investments.
• You will also pay Capital Gains Tax on profits made when you sell your units for a higher price than you bought them for.
• How much you pay depends on your income tax bracket, age and if any rebates are applicable to you.
You can apply for any one of the following funds
Fund Minimum Disclosure Document Absa Multi Managed Bond Fund MDD Absa Money Market Fund MDD Absa Inflation Linked Income Fund MDD Absa Income Enhancer Fund MDD Absa Bond Fund MDD Absa Core Income Fund MDD Absa US Dollar Income Fund MDD Absa Sterling Income Fund MDD Absa Euro Income Fund MDD Absa Tactical Income Fund MDD Absa Flexible Income Fund MDD Absa Multi Managed Income Fund MDD Absa Smart Alpha Income MDD Absa Fundisa fund MDD
Download our investment application form
1. Download our investment application form.
2. Complete the form and gather the required documentation.
3. Email the documents to firstname.lastname@example.org