Smaller Investors - be wise, be careful...

It is not wise to invest amounts so small that the costs will significantly affect returns.

The Equinox fee structure offers excellent savings. However, even our low fees become 'expensive' percentage-wise on small investment amounts. In order to realise real gains from unit trust investment we advise that investors stick to the following recommended minimums:

• Lumpsum investments should be at least R40 000 per portfolio invested into.
• Debit orders should be at least R1 000 per fund invested into.

'Savings' type products for small investors in SA are generally endowment policies that tie you in to 5 years and take almost 100% of everything that you pay in the first 12-18 months. Only then might you start to see a slow increase in your investment value - if you have been invested in the right funds! Penalties if you withdraw early are severe.

Starting Out

You have to start somewhere - and there has to be a better option than trying to save up through your bank account. Our advice to small investors is keep regularly putting money into a money market fund. Money Market funds give you a positive, above inflation return and don't incur the same costs from the management companies as other funds.

When you have built up a few thousand rand, look at switching across into another fund that might provide you with higher returns. By then you should also have a pretty good idea of what fund you would like to invest in, because you will have visited us a few times and done some reading! (Remember, until you have a clear idea, or if markets seem a bit uncertain, then stay in money market funds. They're low-risk and safe.)