Satrix’s Senior Client Experience Manager, Thembeka Khumalo, gives her tips for beginner investors.
Thembeka Khumalo, Satrix’s Senior Client Experience Manager, talks to us about why investment vouchers are the best gift this festive season, the easy-to-use SatrixNOW platform and how easy it is for beginner investors to get started.
Is it a good idea to swop gifts for investments?
At all the baby showers I’ve attended since joining Satrix, a Satrix voucher has been my go-to gift to the unborn child to kickstart their financial independence. Imagine the privilege of being an investor before you’re even born!
What ETF would you love to be gifted this festive season for your investment portfolio?
I still love the Satrix Nasdaq 100! Just imagine owning a part of 100 of the largest Nasdaq-listed companies. It’s a dream, I tell you!
What is index investing?
Simply put, index investing is investing in a basket of securities that tracks the performance of a specific index. Investing in an exchange-traded fund (ETF) is index investing. When I started at Satrix six years ago, I was a novice at investing (and I’m still not quite at pro level yet), but with index investing,
I get to invest like a pro. Seeing the impact index investing can have on financial inclusion and people’s quality of life makes my work so rewarding.
How does Satrix make index investing easy?
Financial inclusion is at the heart of what Satrix does, and with SatrixNOW, investing has been made that much easier. SatrixNOW is our low-cost and easy-to-use investment platform with no minimum investment amounts, which shows we mean business when it comes to financial inclusion. SatrixNOW also offers flexible investing, meaning you can invest in lump sums or recurring investments, whatever works best for you! To make things easier for the new investor, we have four flagship funds known as our Access Range to help get you started. These provide investors access to local and global markets, a money market fund and a multi-asset fund. Visit our website to find out more about the Access Range.
How can you get started with ETF investing?
Have a goal and plan accordingly. Ask yourself: why am I investing? How much time do I have to invest? How much risk am I willing to take? Then, make your fund selection. Depending on how long it’ll take to achieve your investment goal, choose which fund will best suit your end goal. Open your SatrixNOW account. You’ll automatically get a standard account and a tax-free savings account (TFSA).
What’s one pro and con of index investing?
Pro: They’re inherently diversified, representing many different sectors within an index and protecting you against deep losses.
Con: An index fund doesn’t have the potential to outperform the market the way managed funds can. But with managed funds, you may have to pay higher fees.
Do you invest in any indices?
TK: My fave is the Satrix Top 40, the first to launch in SA, which has won the SALTA People’s Choice Award for the favourite South African ETF five years running!
