Investing is allocating money and resources to particular financial schemes, real estate, stocks, and companies with the goal of profiting over a set period of time. You have the option of investing on your own or via investment companies.
If you choose the latter option, your first goal should be to locate the best investment companies in South Africa.
Investing, like any other financial activity, has a variety of dangers. The nature of these risks varies according on the kind of investment made.
Investing in equities, for example, carries the risk of inflation and marketability.
You may potentially lose all of your money while doing so. Investing in property or real estate, on the other hand, entails asset-level risk as well as overall market risk. Investing your money properly, even with these dangers, produces excellent returns over time.
Why Should You Put Your Money in Investment companies?
In today’s society, there are arguably two methods to make money. One way to make money is to work for yourself or for someone else.
The second method is to invest your money or assets so that they grow in value over time or generate dividend income. Most individuals would like to invest their money via investment companies.
- Investment companies, often known as fund companies, are trusts or businesses that aggregate investor resources and invest them in financial instruments or securities. This is accomplished via mutual funds, often known as open-end funds or closed-end funds.
- As a result, before investing your money into an investment business, you should understand how it works.
- Investing money via a fund business, on the other hand, offers a number of advantages, including: access to infrastructure and private equity, among other difficult-to-sell financial assets; and protection from significant market pressures.
- Because investment companies combine their resources, they have more financial strength and choices to resist significant market pressures. Investment companies, for example, may borrow money to make investments.
- You can buy or sell stocks at any time during normal trading hours. A good oversight body in the form of a board of directors ensures that investor interests are protected.
- A closed-end investment structure that allows the company to take advantage of longer-term investment opportunities without the interference of investors who would opt out of the investment company by selling their shares.
- Whatever path you choose, your money will ultimately begin to generate its own income. If the value of the stock or mutual fund rises, you may profit by selling it at a much higher price.
- Furthermore, many stocks or mutual funds pay quarterly dividends (a proportion of the company’s profits).
- Dividends on investments are often re-invested in the business, so the quantity of shares you hold and the value of that stock will continue to rise.
- Although there is no guaranteed rate of return when investing, the average is about 7% each year.
- Whether you want to prepare for retirement, pay for your children’s school, or save for a down payment on a home, investing may help you get there.
- There are many companies in which you may invest, and to spare you the time and effort of research,
We have selected the 17 investment companies in South Africa in which you can place your hard-earned money.
Top 20 Investment Companies in South Africa 2021
AllanGray was founded in 1973 and has grown to become one of South Africa’s finest investment companies. It offers a diverse variety of investment solutions to investors seeking capital gains and other financial advantages.
The firm has two major investing segments. These are investments in unit trusts and group savings.
Allan Gray is one of South Africa’s most popular investment companies due to its outstanding success throughout the years since its inception. Their headquarters are in Cape Town.
They have many branches across South Africa. Allan Gray also provides the Allan Gray Balanced Fund in addition to unit trust investments. This is the company’s main unit trust product, and it is intended for long-term investors.
FirstRand, a South African banking business, is Africa’s largest investment corporation. FirstRand was founded in 1970 and is headquartered in Sandton, South Africa. With $18.5 billion in sales, it ranks sixth on Africa Ranking’s list of the “Biggest Companies in Africa.”
It is South Africa’s biggest bank. FirstRand Bank, a subsidiary of FirstRand Limited, employs approximately 42,000 employees and has connections to RMB Holdings.
Stanlib Stanlib has been in business since 2002, beginning as a joint venture between Standard Bank of South Africa and Liberty Life.
They have accomplished much since its start and have developed in their skills to suit the requirements of their customers through time and provide various methods to achieve investment growth and wealth preservation.
They provide experience in a variety of investing disciplines and now manage about R600 billion in assets. They provide offshore investments for individuals who wish to invest in overseas assets.
Their products are divided into three categories: income, steady growth, and offshore, making it easier for investors to choose the fund in which they want to invest.
4. IP Global Momentum Equity
IP Global Momentum Equity invests mainly in international markets, although there are no limitations on geographical asset allocation. The fund assists investors in achieving a long-term balance of growth and income.
The minimum investment is R10,000, and in terms of returns, you may anticipate up to 86.63 percent exposure to the total investment.
R1,000 invested on February 28th, 2020 was worth R1,823.87 on the same day (82.39 percent annual compound return), whereas R100 each month since February 28th, 2020 was worth R1,517.37 on the same date (82.39 percent annual compound return) (42.72 percent annual return compounded monthly).
In 2021, the fund exhibits significant progress. Its NAV and TRI performance sheet shows a five-year rising trend.
5. Prudential Investment Managers
If you want to accomplish your financial goals, investing with Prudential Investment Managers is a good option since they are one of the biggest investment companies, with over R250 billion in assets.
They provide a diverse selection of unit trusts, including equities funds, balanced funds, real estate funds, income funds, tax-free funds, and offshore investments.
6. FBN Holdings
FBN Holdings is a Nigerian bank that offers commercial, corporate, and investment banking services, as well as insurance. According to Africa Ranking, it has a $600 million revenue and has been awarded top bank brand five years in a row.
According to Bloomberg, its services are available across Nigeria and worldwide, with 10 million users and 874 sites in 12 countries as of April 2017. 750 of those sites are in Africa. FBN’s headquarters are in Lagos, and the bank employs about 7,000 people.
Coronation is ideal for those looking to save for retirement. They were founded in 1993 and are focused on asset management; as of December 2020, they handle R594.7 billion in customer assets.
Pension and provident funds, medical plans, unit trusts, banks, insurers, and other fund managers are all available. In addition, they manage assets for an increasing number of foreign retirement funds, endowments, and family offices.
8. Standard Bank Group
In terms of assets alone, Standard Bank Group is the biggest African banking group, with a market capitalization of $28 billion, according to its website. It was established in 1862 in Johannesburg, South Africa, and currently works in 20 nations across Africa and the rest of the globe.
With a revenue of $14.4 billion, it ranks sixth among Africa Ranking’s “Biggest Companies in Africa.” It’s no wonder that Standard Bank Group ranks so high on our list, with over 69,000 workers worldwide.
Investec has almost 200 years of experience in helping individuals achieve their financial objectives. It is one of the finest companies that can help you build your money while providing you with the highest returns on your investment.
10. iTransact Fund Managers (IFM)
iTransact Fund Managers provide a collection of investment schemes with a range of investment goals, from value investing to ultra-conservative.
They provide a variety of funds that are available for investment by both regular and institutional clients.
11. Zenith Bank
Zenith Bank, Nigeria’s second biggest bank, was established in 1990 and has a revenue of $1.9bn, according to Africa Ranking. It was initially listed on the Nigerian Stock Exchange in 2004, then after a successful initial public offering, it was listed on the London Stock Exchange.
It is Nigeria’s second biggest bank, with headquarters in Lagos and approximately 500 branches. Zenith employs 7,400 people and has subsidiaries in Ghana, Gambia, Sierra Leone, the United Arab Emirates, and the United Kingdom. It is ranked 24th on Africa Ranking’s overall ranking of the “Biggest Companies in Africa.”
12. ABSA Money Market Fund
Unlike bank investments, ABSA Money Market has no monthly administration costs and calculates interest daily. The fund’s management allows for a minimum investment of R100,000 in short-term market instruments, with a maximum weighted length of 90 days.
It is one of South Africa’s oldest unit trust funds, having been founded on May 2, 1977. Juan Bekker and Rehana Rungasamy are the noteworthy individuals responsible for its phenomenal development to its present value of R92,3 billion.
13. Old Mutual Gold
Old Mutual is one of Africa’s oldest and most respected investment managers, with a broad variety of comprehensive investing skills.
They’ve been around for a long time and have helped millions of South Africans realize their dreams.
14. Guaranty Trust Bank
Based in Lagos, Nigeria, Guaranty Trust Bank is ranked 22nd on the Africa Rankings list. According to Africa Ranking, it generates $2.2 billion in sales and operates in eight additional African nations.
It went public six years after its founding in 1990, in 1996, and was the first Sub-Saharan bank to be listed on both the London and German stock exchanges.
It is collaborating with Eko Atlantic Metropolis, a cutting-edge coastal city being constructed on Victoria Island in Lagos. Guaranty employs about 10,000 people in Nigeria, Gambia, Ghana, Kenya, Liberia, Rwanda, Sierra Leone, Uganda, the United Kingdom, and the Ivory Coast.
15. Foord Balanced Fund
Like Coronation, the Foord Balanced Fund excels in retirement investing. Their primary aim is to increase retirement savings by providing significant, inflation-beating returns over time.
16. Fairtree Capital
Fairtree Capital has accomplished tremendous achievements since its start in 2003, the most recent being the Best SA Equity General Fund on a risk-adjusted basis.
Knowing that you have placed your money in an investing business may provide you with confidence and security for the future, knowing that you will not have to worry about retirement, your children’s future, or whatever else may be the case.
Your funds will be managed by experts, who will simply repay you with the accrued interest when you file a claim. The investment companies listed above can be trusted, so your money will be in excellent hands.
Do not lose time; begin working on your financial development by investing in the appropriate companies.
17. BMCE Bank
With headquarters in Casablanca, Morocco, BMCE Bank, or the Banque Marocaine du Commerce Extérieur, was established in 1959 and currently ranks 19th on Africa Ranking’s list of the ‘Biggest Companies in Africa,’ with a $3.8 billion revenue.
According to Bloomberg, it has about 550 national and international branches, with offices in France, the United Kingdom, Spain, Belgium, the United Arab Emirates, Canada, and China. Currently, the bank employs about 5,000 people worldwide.