Investing is good, it guarantees that we will have something to fall back on in the future should things not go according to plan. Let’s look at some places where you can invest R1000 in South Africa in order to get the best returns.
ETFs
The stock market is the best place to invest your R1000, some companies see an annual growth of over 200%. However, investing in just one company is dangerous because the share price might decline and take years to recover. It’s best to invest in an ETF, which is a basket of shares of the best performing companies.
Instead of investing all your R1000 in Sasol, you can spread it between Sasol, Absa, Capitec, Nedbank and all other top companies. You don’t have to do this by buying individual shares in each company; you can just invest in an ETF, which automatically gives you share ownership in these companies. The most famous one is the Satrix Top 40, which allows you to invest in the top 40 companies in South Africa from as little as you have, you can even start with R50 or R100.
The annual returns to date on the day of writing this article are 24%, not bad to have your money grow by 24% per year. The best thing is that it is very safe and protected; there is no way that the best 40 companies in the country would collapse at the same time.
This might sound intimidating but getting started is easy; all you have to do is to open an EasyEquities account and start investing. It’s free to open and offers a demo account for you to practice on. You don’t need a computer, having a smartphone is good enough.
Invest it in a bank
You can put it in a savings account at a bank and earn interest from it. The best bank for this is TymeBank; you can earn up to 7% interest and 8% if you earn your salary through TymeBank. You won’t really get to see your money grow; it will just be protected that’s all and will grow at a slow rate.
Invest in crypto
Crypto currency is here to stay, it has made returns over 40k% for some people just within the last 2 years. It is highly volatile but it’s probably where you should invest this R1000 if you aren’t afraid to lose it and will need it in the long term.
It’s difficult to guess which crypto coin will win in the long run; it’s also best to invest in at ETF. EasyEquities offers an ETF for crypto currency name EC10. Your returns will probably sky rocket but your principal amount is not completely safe.
Conclusion
This was a guide on where to invest R1000 in South Africa. Do you have any thoughts or questions? Comment below.
