Investment companies in South Africa that will help you put your money in right places, understanding of what investment firms are and what role are the play in the process of growing your money.
What are Investment Companies?
There are many people who are stuck with large sum of money that are looking for trustworthy opportunities where they can invest this money and get it to work for them.
In most cases, many rich people or wealthy individuals with huge savings, are most likely in a lookout for great opportunities to put their money with less effort to earn interest.
It is everyone’s wildest dream to have money and make money work for them.
But what does that mean?
This means putting money in a source that will yield great return on investment (ROI) without you putting any effort, anyway, who wants to work hard for hard worked money?
With that being said, how one can accomplish this task, the answer is, investment companies.
For a simple explanation, top investment companies in South Africa are responsible for taking care of your money, meaning that you hire this people to ensure that they grow your money.
Again, we will explain this in simple terms, how do they go about growing your money. Well investment firms will simply look for great opportunities and analyses the risk to ensure that they put your money on sources that will most probably earn results.
They may invest their customers or clients’ money in securities like stock markets, real estate and other sources that will generate high volume interests in a set period of time.
Using an investment firm will save lot of headache which may include trying to start your own business and ending up losing your capital.
They will deliver you from trying out Cryptocurrencies and other methods of generating and growing your money with less effort.
Investment Companies in South Africa
Below is a list of great investment firms that we have in South Africa which are recommend, trusted and have around for many years.
- Allan Gray
- Safrika Holdings
- IFM iTransact Fund Managers
- Mineworkers Investment Corporate
- Thebe Investment Coronation
- African Rainbow Capital
- Richmark Holdings
Remember to ensure that, when it comes to anything that involves money, always choose reputable companies to work with, this will keep you rest assured that you will always have something in return.
How Does Investment Companies Work?
Stock Exchange – Because most investment firms are public limited companies, their shares are listed on stock exchange. Investment firms are beneficial to work with because they are listed in several stock exchanges.
Close ended Structure – unlike unit trusts which are open-ended, investment firms known mostly to be closed-ended.
What does this mean?
Because you invest in an investment firm by buying shares from a co-investor from another stock market, a close-ended structure is beneficial because they have fixed number of shares.
This makes them preferable source of control simply because open-ended funds contract depending on demand as investors move their money out and in of the firm.
So, in essence, open-ended firms must ensure that at any given time by investors, they must be in a position where they can give money back to their clients.
This mean that they will invest only in assets which can be sold very quickly and keeping part of the fund in cash to cover anytime withdrawals.
Investment Companies in South Africa are mostly close-ended and most of them don’t have to deal with outflows and inflows.
This alone puts them in a position where they will be able to invest in assets which can be hard to sell and buy like private companies and infrastructure with the potential to deliver better long-term returns or higher levels of income.
With that being said, this alone allows investment firm decision makers to arrange long-term investment decisions as they don’t have to sell and buy investments based on client’s moving funds in and out of the bucket.
There are many ways that share prices can be shown as you buy investment firm’s shares on the stock market.
As you get in the swing of how the process works, you will learn that the price you buy shares for is higher than the price you sell shares for. The industry jargon calls this price an “offer” and inversely name “bid” to the selling price.
Bid-offer spread is the difference between this two.
In conclusion, there are great top Investment Companies in South Africa that you can explore and choose from, which have also been around for decades.