There are a few options when it comes to investing. There is not 1 investment that is better or worse than the other, each has it’s place in your financial planning.

Unit trust investment

It can either be a short-term investment that available in ±7 days. It is usually used for an Emergency fund or money that will most likely be used within 1-2years.

For Capital Growth you can invest in the stock market, both local and offshore funds to get exposure to the upside of shares.

5 year Fixed investment

One of the biggest benefits of the 5-year rapper is the fact that the money is paid out tax free. Meaning you do not pay tax on it in your hands. There is however tax in the investment, but that tax is paid by the insurer the investment is with.

With the 5 year Fixed investment the cost of the product might be a bit higher but is worth it if you are in a higher tax bracket. It is also good to restrict yourself from withdrawing the money. You can have specific portfolios that make up your investment portfolio. There are different variations of this investment.

Unit trusts

Investments in unit trusts are an investment into a basket of shares. There are no fixed term for this type of investments and are available within 7 days. You can structure your investment according your personal need. You can invest money in a money market account, which is also a unit trust for an emergency fund or you can invest in growth shares for capital growth.

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