What is the best investment option for you?
The first thing that you need to establish from the beginning is what your investment objective is, once you have established that, you can go through a process of elimination to determine what the best Investment Product or Investment Vehicle will be for you to achieve your investment objective.
Once you have determined what vehicle you will be using, you can then determine what sort of risk tolerance you are willing to take off with the underlying unit trust. The longer your investment time horizon (interment period), the higher the amount of risk you can afford to take.
How do you choose the right products that meet your needs?
In some cases you might have more than one product that might meet your needs, so you will then look into what your personal preference will be regarding if you want the investment to have a fixed term, or if you would like access to the funds straight away.
How do you choose between unit trusts that suit your risk profile?
The first place to start is to look at the top five asset managers and realize that they have not become popular overnight and have a great track record. Then look into their investment philosophy and see if you agree with them and would want to use them to look after your hard earned income. My personal favorite would be the likes of Allan Gray, as they have a set Investment Philosophy that has not only proven to work for them, but has worked for the likes of Warren Buffet, who is one of the richest men in the world today. I am not saying that they don’t get it wrong, but through hard work and loads of dedication to achieving returns for the investors they have got it right more than they have got it wrong.
But if any of the above is too much for you and you just don’t have the time to manage this process, get in touch with a Certified Financial Planner® that you can trust and can guide you along the way.
All Video Clips and Pictures supplied by Allan Gray
May 11, 2015
Grant van Zyl