Author Topic: Two Million Rand investment  (Read 16888 times)

yozzi

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Two Million Rand investment
« on: August 13, 2013, 12:00:56 pm »
If you had 2 million Rand right now to invest on the stock market over a period of say 3-5 yrs where would you invest? I suppose a return of about 25-30% pa being the goal.

Would you use a combination of shares & fund managers? Any suggestions?

AVM

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Re: Two Million Rand investment
« Reply #1 on: August 13, 2013, 12:32:32 pm »
Very few fund managers do 25 to 30%, and if they do it's a real bull market. The satrix indi has been returning 30%+ for some time and is well diversified, why not just buy that?

gcr

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Re: Two Million Rand investment
« Reply #2 on: August 13, 2013, 01:18:32 pm »
I would still invest in different sectors of the market - especially those that could be at the forefront when the economy ticked up. I would not stick all my funds into Satrix Indi - look at its composition and then maybe select some other shares not in the index. Sector which are not in favour currently but are likely to improve going forward are pharmaceuticals, retail and as soon as interest rates start going up banks. Also look at companies who manufacture foodstuffs, and agriculture stocks. I am a firm believer in diversification whereas many on this forum are more in favour of very limited diversification - so you have to make your choices   
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yozzi

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Re: Two Million Rand investment
« Reply #3 on: August 13, 2013, 05:03:58 pm »
Very few fund managers do 25 to 30%, and if they do it's a real bull market. The satrix indi has been returning 30%+ for some time and is well diversified, why not just buy that?

That's my thinking at the moment but it's good to get different opinions and just proves that we don't all think and invest in the same way! Will probably go 70% Stxindi and the rest in various other investments

Nios

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Re: Two Million Rand investment
« Reply #4 on: August 13, 2013, 05:08:20 pm »
Perhaps my thought process isn't sound enough yet as I'm still learning. For me it would be Satrix Indi or an equivalent. Perhaps CML.

However, based on what GCR and AVM has said, would tend to agree. My learning's have been to stick to tracker funds/etfs for the long term but still be nimble enough to make a judgment call on the direction of the specific industries as (s)he says. I'm guessing if you're buying a FINI type fund/etf now, you're buying on the cheap with the hope of it moving up when rates start hiking again. More units purchased for the Rand now as opposed to when they're more expensive. Yet, a STX FINI hasn't seen the type of growth the INDI has. But who knows how long you'd need to be in for before prices start rising.

If I had 2mil now or a few months back I'd be all in for a INDI as the basket of companies it holds are providing services for the general populations basic needs. Surely you can't go wrong with that?