Investing in the New Year
The new year means time to get serious about your financial goals. Here’s how to begin investing.
The new year is a great time to set financial goals for yourself. There are many platforms available for saving and investing, but here’s our pick on how you can start buying shares easily.
It is also important to be aware of the pros and cons. Buying shares in larger companies means they will grow with their economies and it is generally easier to buy and sell, but the downside is you could lose it all, and go through the emotional ups and downs of the market.
The bottom line is that it is riskier than saving money the traditional way via a savings account with your bank. Therefore, you need to take time to research which company to invest in, and if the money you have set aside for this is not needed elsewhere in your budget.
It is also best to get advice from a financial advisor and check what the tax implications may be, where applicable.
Here are some apps to consider investing in:
It’s easy to see why you should consider EasyEquities as there are over 1.2-million users investing on the platform with multiple global awards to its name. Their aim is to simplify the process by not having a minimum purchase amount or platform fees. It lets you purchase shares in Vodacom, Discovery, Capitec, RMB, Woolworths, Dis-Chem, Clicks and a bunch of South African companies. When you open an account with EasyEquities, you get an investment account, a demo account to play around with to learn, and a tax-free savings account. The app displays your investment in colour-coded graphs for a quick snapshot of your portfolio.
It is a good idea to check what your bank is offering when it comes to buying stock, whether it’s for local companies or international. For some, the appeal is trusting a bank that already has your money. Standard Bank has a platform and app called Shyft, which allows you to buy shares in companies like Apple, Facebook, Nike, Zoom, Alibaba, etc. If you’re an FNB customer, the app offers an investment portfolio that also lets you buy shares from Tesla, Netflix, Apple, Amazon, etc. including local companies like Shoprite or First Rand Bank. The key things to look out for are fees and possible taxes.
The Franc app aims to make investing affordable, accessible, and social. It also has an offering that requires no minimum amount to invest, no paperwork and low fees. You can save money or open a tax-free savings account and decide to invest some of it in shares from Satrix’s Top 40, which includes the 40 largest companies listed on the JSE. All investments have a 1% annual fee, i.e. R1 for every R100. There’s also a risk assessment quiz you can take to help you decide where to start.