Investing your money is the best move and investing with a reputable company is much greater and more comforting.
Investing is all about putting money and resources into certain financial schemes, property, businesses, and stocks with the expectation of achieving a profit over a certain period.
Investment companies are financial institutions that pool money from investors and invest the money in financial instruments and securities such as bonds and shares.
There are so many investment companies in the market and deciding on the best investment company to invest your hard-earned money in is a daunting task.
For your sanity and financial safety, we have made finding the top investment companies much easier for you.
In this article, we highlight the top investment companies in South Africa.
Before we get into the list, let us first discuss why you should invest your money with an investment company.
Why You Should Invest Your Money In Investment Companies
Arguably so, there are two ways that you can make money and secure your financial freedom, either by working (for yourself or someone else) or by investing your money or assets to accumulate value and earn dividend income.
Investing your money with investment companies is way better than saving your money in the bank where it won’t earn as much profit and worse the value of the cash might reduce over time due to low-interest rates and inflation.
You may consider investing your money through investment companies for the following reasons:
- Investment companies have more financial power and choices to withstand major market pressures, e.g., investment companies can borrow money to make investments.
- You as an investor will have access to invest in any hard-to-sell financial assets, infrastructure, and private equity.
- With investment companies, you will be able to buy or sell stocks anytime during normal trading time.
- Whatever you invest in, your money will eventually generate its income, and if the value of the stock or mutual fund increases, you may get a profit by selling it at a much higher price.
- You will be paid dividends, which are a percentage of the company’s earnings.
- The dividends can be re-invested in the company which will then increase the amount and value of the stock you own.
- Most importantly, your money will be protected.
1. AllanGray
Founded in 1973, AllanGray is South Africa’s biggest and most well-known financial service company. It is considered the best investment company that has been thriving in the business of creating financial security for everyone who trusts them with their money.
It offers a variety of investment products that investors can put their money into for capital growth and portfolio diversity.
AllanGray has two main categories, these are unit trust and group savings. With unit trusts, you can save for retirement or your children’s education, invest in offshore, start a transfer or tax-free investment, begin a basic investment, transfer your existing retirement savings, and get an income during retirement. Group savings involves retirement savings solutions for your staff and savings for retirement through your employer.
Their headquarters are in Cape Town, and they have additional offices in Windhoek, Namibia, and Gaborone, Botswana. They also have an affiliate office in Australia.
They are partners with Orbis with whom they share a founder, investment philosophy, and values. Orbis provides them with access to foreign markets, backed by expert research and a long-term track record.
2. Stanlib
Stanlib was established in 2002 as a joint venture between Standard Bank and Liberty Life.
They offer a wide range of investment disciplines and their expertise spans active and passive asset management with single- and multi-manager offerings.
Stanlib has investment solutions for growing or preserving capital or drawing an income from an investment. These solutions are unit trust investment, tax-free investment, and retirement investment. They also have offshore investments for clients who want to invest in foreign assets
They currently manage over R600 billion worth of assets.
From inception, they have been meeting their clients’ needs and providing them with ways to achieve investment growth and capital preservation.
3. Coronation
Coronation was founded in 1993 by a group of investment professionals who left an established institution to start their own fund management company.
From its inception, the company’s main focus has been on asset management, and they have been delivering competitive long-term returns to its clients.
Coronation is the master of retirement investments. It offers offshore investments, property investments, and cash deposits. Some of the products that they have are money market, global opportunities equity, and balanced defensive.
As of March 2022, Coronation manages R625 billion in client assets.
4. Investec
Investec is a bank and a wealth management company that prides itself on helping people turn possibilities into realities.
The company started as a small finance company in South Africa in 1974 and has now grown to be an international organisation. They are listed on the London and Johannesburg Stock Exchanges.
With Investec, you can invest for your growth, invest for income, invest for IHT relief, or preserve your wealth.
5. iTransact Fund Managers (IFM)
iTransact Fund Managers (IFM) is an asset management company that was established in 1964.
They offer collective investment schemes (unit trusts) with various investment objectives ranging from value investing to ultra-conservative.
Their current funds include Balanced Value Fund of Funds, Bond Fund, Equity Fund, Global Diversified Fund, Income Fund, and Technical Fund.
6. Old Mutual
Old Mutual is one of the oldest leading investment managers in South Africa that offers a comprehensive range of investment products for both institutions and individuals.
Individual investors can access their diverse investment expertise via their unit trust funds and institutional offerings are available via pooled or separate (segregated) portfolios, including bespoke investment solutions.
7. Foord Balanced Fund
Foord Balanced Fund, an asset management company founded in 1981 is ideal for investing in retirement fund products.
They offer a package of actively managed unit trusts which are created to meet the needs of long-term investors.
8. Fairtree
Founded in 2003 and based in Cape Town, Fairtree is a leading investment manager that manages alternative and long only investment portfolios.
They have local funds, offshore funds, and tailored solutions. Their solutions include various forms of equity, fixed income, credit, commodity, and property.
9. M & G Investments
Previously known as Prudential Investment Managers, M & G continues to manage assets on behalf of Prudential plc clients worldwide.
They are focused on helping their clients to achieve their financial goals by protecting and growing their savings over time.
M & G offers a wide range of unit trusts that suit all risk profiles and return objectives.
As of March 2021, the company has over five million clients and it operates in 28 markets around the world.
10. Absa
Absa is one of the reputable banks that offer great investment products and services, making them the best investment management company in South Africa.
They have various products that cater to all their clients’ needs. With their investment products, expertise, and capabilities you grow your money, generate an income, and also protect your capital.
Their investment solutions include unit trusts, tax-free investments, retirement annuity funds, investment accounts, offshore investments, and linked endowments.
Conclusion
Remember, investment returns are not guaranteed, any investment comes with its own risk. Be open-minded because there is a chance that you might end up with less than what you invested if you withdraw after a downturn.
The level of investment risk associated with each unit trust depends on the underlying assets of that unit trust. For example, the risk of losing money is higher in an equity-only unit trust than in a unit trust that invests in a mix of assets.
In most cases, higher investment risk comes with higher potential long-term investment returns. However, you would typically need to remain invested for a longer period of time. This is because these investments move up and down over the short term, and if you need to access your money sooner than expected, you may lock in losses.
With all the things that could go wrong, putting your money in investment companies is still the best move that you could do for your financial security.