Unit Trusts
(collective investments)
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unit trusts south africa
Wikipedia describes a Unit Trust as:
"A unit trust is a form of collective investment constituted under a trust deed.
Unit Trusts (Collective Investments) offer access to wide range of securities for all types of investors.
Unit trusts are open-ended investments; therefore the underlying value of the assets is always directly represented by the total number of units issued multiplied by the unit price less the transaction or management fee charged. Each fund has a specified investment objective to determine the management aims and limitations."
Classification of South African Regulated Collective Investments (Unit Trusts) by The Association of Savings & Investment SA (http://www.asisa.co.za/)
- Domestic
These are collective investment portfolios that invest at least 80% of
their assets in South African investment markets at all times.
- Equity
- Asset Allocation
- Real Estate
- Fixed Interest
- Worldwide
These are collective investment portfolios that invest in both South African and foreign markets. There are no minimums set for either domestic or foreign assets.
- Equity
- Asset allocation
- Fixed Interest
- Foreign portfolios
These are collective investment portfolios that invest at least 85% of
their assets outside South Africa at all times.
- Equity
- Asset Allocation
- Fixed Interest
Total Expense Ratio or 'TER'
The Total Expense Ratio is a measure of the total cost of a fund to the investor. Total costs may include various fees (purchase, redemption, auditing) and other expenses. TER’s are expressed as a percentage of the daily average value of the portfolio and are calculated over a period of usually a financial year.
Definition of investor risk profiles:
- A conservative investor requires stable investment growth or a high level of income. The primary investment goal is capital protection. This investor may require access to the investment within three years.
- A cautious investor requires stable growth in his/her investment and is uncomfortable when investment values decline.The investor may require a moderate level of income and is likely to have an investment horizon of at least three years.
The primary investment goal is capital protection.
- A moderate investor invests for the longer term (at least five years) and requires no income. The investor can tolerate
fluctuations in the value of his or her investments from time to time. The primary investment goal is capital growth.
- An assertive investor invests for the long term (at least seven years) and requires no income. Typically, this investor is
prepared to accept more risk than a moderate investor, but does not want full exposure to equities. The primary
investment goal is capital growth.
- An aggressive investor invests for the long term (at least ten years) and seeks the highest possible growth. Typically, the investor is prepared to accept substantial fluctuation in the value of his or her investment. The primary investment goal is long-term capital growth.
Professional Independent advice on investing in unit trusts.
- C and assist you to Apply Online For Unit Trusts
- PSG Online provides the investment platform through which you can invest in a range of unit trust funds provided by different companies. These funds have been carefully scrutinised to ensure that you receive the best possible fund manager to match your investment mandate requirement.
( Online Securities Ltd a Member of the JSE Ltd providing all stock broking and related investment services, and is an authorised Financial Services Provider, FSP No. 42996.
PSG Online Solutions (Pty) Ltd an authorised Financial Services Provider providing insurance solutions, FSP No. 42524. )
Some of the advantages investing through PSG Online:
- Diversification - Unit Trusts represent a basket of shares, commodities or properties and provide broad exposure rather than the focused exposure of underlying share trading.
- Accessibility - Unit Trusts can be traded using your PSG Online Unit Trust account as a once-off transaction or via monthly debit orders.
- Flexibility - PSG Online offers you access to a wide range of Unit Trusts from a number of different providers, including Allan Gray, Coronation, Investec and PSG Fund Management. We do not restrict you to funds from one management company.
- Tax Efficient - Unit Trust managers may trade within the unit trust portfolio without becoming liable for any income tax on profits. Long-term investors can therefore benefit from active and frequent trades on the part of the fund manager, while only becoming liable for the standard Capital Gains Tax (CGT).
- Transparency - Unit Trust owners know exactly what stocks or underlying assets they're holding and what the value is.
- Long Term Savings - Unit Trusts work very well within a retirement portfolio - such as a Retirement Annuity (RA), Pension- or Provident Fund. That allows you all the tax benefits of a retirement fund with the added advantage of choosing your underlying fund managers.
- Income - Because the underlying assets earn dividends or interest, you can receive an income from your Unit Trust portfolio without reducing your total investment.
PSG Online will assist you with these simple steps for the online registration process.
- STEP ONE: Register online for Unit Trust account and PSG Online web profile.
- STEP TWO: Provide us with your FICA details if you are new to PSG Online. PSG Online will open your Unit Trust account within 48 hours of receipt of your FICA documents.
- STEP THREE: Login to your collective investment scheme account. You will use the same username and password chosen when you registered for your web profile in Step One.
- STEP FOUR: Purchase your Unit Trusts collective investment scheme in your Unit trust account straight from your portfolio.
Disclaimer: Please note that the content above is for general information purposes only and is not intended to be legal and/or financial advice. Information contained herein should not be acted upon without further consultation with your professional legal and/or financial adviser. Information and opinions given by product suppliers on this website do not necessarily reflect that of JEFC.
Complete this short form and PSG Online will contact you.
Useful information:
- Click here for: Classification of Risk Profiles
(212 Kb) - Click here for: Collective Investments Classifications
(84 Kb) - Click here for: Advantages And Disadvantages Of Unit Trusts
(12 Kb)
