Definition
Investment planning focuses on identifying effective investment strategies according to an investor’s risk appetite and financial goals. There is a wide variety of investment options available. This includes shares, bonds, unit trusts, bank deposits, real estate and derivatives. Through investment planning, one can identify the most appropriate portfolio to reach your goal.
An investment plan is the first step in reaching your financial goal. A financial goal ranges from saving for retirement – which is long-term – to saving for your dream wedding.
Investments provide returns in one or more of the following forms: dividends, fixed interest and price appreciation (capital gain). Each of these “returns types” are taxed differently in South Africa. Returns are therefore more comparable on an after-tax basis.
Examples of investment products
As part of our financial solution, we make use of the following investment products:
- Unit Trust Funds
- Retirement Annuities
- Preservation Funds
- Shares (local and international)
- Cash Investments
- Bonds
- Equity Traded Funds (Index Funds)
- Endowments