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  1. Personal /
  2. Investment Products /
  3. Absa Unit Trusts

UNIT TRUSTS

Maximise your market exposure through a Unit Trust investment

Our Unit Trust Funds offer greater diversification and minimal risks, while providing added peace of mind as 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 a Unit Trust Fund?

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.

 

  • Tier 1: Location

    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.

  • Tier 2: Type

    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 3: Area of focus

    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 a Unit Trust Fund do for you?

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:

It’s for everyone

You do not need large sums of money to get going, it’s accessible to all.

Easy to sell

You do not need to wait for long periods if you need to access money.

Secure investments

Your money is in safe hands as legal structures prevent suspicious acts.

What does a Unit Trust Fund 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.

 

  • Minimum investment

    Initial lump sum investment
    R2 000

    Monthly investment
    R200

  • Fees and charges

    Initial administration fees (lump Sum)
    Absa 0.00%
    Adviser 0 - 3.45% (@ 15% VAT)

    Annual administration fees
    Adviser 0 - 1.15%

    There is no performance fee.

  • Tax implications

    • 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 these Unit Trust Funds

  • Interest bearing Income

    Fund  Minimum Disclosure Document Apply
    Absa Multi Managed Bond Fund  MDD Apply
    Absa Prudential Money Market Fund   Apply
    Absa Income Enhancer Fund  MDD Apply
    Absa Inflation Linked Income Fund MDD Apply
    Absa Bond Fund  MDD Apply
    Absa Core Income Fund  MDD Apply
    Absa Tactical Income Fund MDD Apply
    Absa Flexible Income Fund MDD Apply
    Absa Multi Managed Income Fund  MDD Apply
    Absa Fundisa fund MDD Apply
    Absa Bond Index Fund MDD Apply
  • Multi-Asset - Low Equity (Max 40%)

    Fund  Minimum Disclosure Document  Apply

    Absa Multi Managed Preserver Fund of Funds MDD
    Apply
    Absa Smart Alpha Defensive Fund MDD Apply
    Absa Absolute Fund MDD Apply
    Absa Inflation Beater Fund MDD Apply
    Absa Global Multi Asset Feeder Fund MDD Apply
    Absa Multi Managed Passive Preserver MDD Apply
  • Multi-Asset - Medium Equity (Max 60%)

    Fund Minimum Disclosure Document
    Apply
    Absa Multi Managed Accumulation Fund of Funds  MDD Apply
    Absa Balanced Fund MDD Apply
    Absa Multi Managed Passive Accumulation Fund MDD Apply
  • Multi-Asset - High Equity (Max 75%)

    Fund Minimum Disclosure Document
    Apply
    Absa Multi Managed Growth Fund of Funds  MDD Apply
    Absa Prudential Fund of Funds  MDD Apply
    Absa Multi Managed Absolute Return Prudential Fund  MDD Apply
    Absa Managed Fund  MDD Apply
    Absa Multi Managed Passive Growth   Apply
  • Equity

    Fund Minimum Disclosure Document
    Apply
    Absa Select Equity Fund  MDD Apply
    Absa Smart Alpha Equity Fund  MDD Apply
    Absa Prime Equity Fund
    MDD Apply
    Absa Dividend Plus Index Fund MDD Apply
    Absa Top 40 Index Fund MDD Apply
  • Property

    Fund Minimum Disclosure Document
    Apply
    Absa Smart Alpha Property Fund   MDD Apply
    Absa Property Equity Fund   MDD Apply
    Absa Global Property Feeder Fund   MDD Apply
    Absa Property Index Fund  MDD Apply
  • Regional

    Fund Minimum Disclosure Document Apply
    Absa Africa Equity Feeder Fund  MDD Apply
  • Offshore

    Fund Minimum Disclosure Documents Apply

    Absa Global Property Feeder Fund  MDD Apply
    Absa Global Multi Asset Feeder Fund  MDD Apply
    Absa Global Core Equity Feeder Fund  MDD Apply
    Absa Global Value Feeder Fund  MDD Apply

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