Investing is all about putting money into financial solutions, products, shares, property, or a commercial venture with the expectation of achieving a profit.
Covid-19 has affected the economy in a way that many people are now nervous about investing their money in stocks or mutual funds.
No lie, investing can be risky but, if you really want to retire comfortably one day then investing is the way to go.
Yes, you can easily save the money in a savings account of which you will have 100% control over but, the good thing about investments is that your money typically brings the highest rate of return and pays off the most in the long run.
South Africa has one of the largest and most advanced financial sectors in Africa, and the country is home to a number of reputable investment companies.
These firms offer a range of investment options to suit various risk appetites, from conservative investments such as fixed income and money market funds to more aggressive investments such as equities and alternative assets.
In this article, we will discuss the top investment companies in South Africa based on their reputation, assets under management, and performance.
Benefits of Investing Your Money
You can either invest your money by buying stock or shares of a company or by buying mutual funds.
Whichever way you choose, your money will eventually start earning its own income. If the value of the stock or mutual fund increases, you can earn money by selling the stock at a much higher rate.
Plus, many stocks or mutual funds pay dividends (a percentage of the company’s earnings) each quarter.
The dividends you earn on your investments often get re-invested in the company, so the amount of stock you own and the value of that stock will keep on increasing.
Although there’s no guaranteed rate of return when you invest, the average is around seven percent per year.
Whether your goal is to save for retirement, put aside money for your kids’ education or save up a down payment for a house, investing can help you get there.
Investing your money has several benefits that can help you achieve your financial goals. Here are some of the top benefits of investing:
Potential for Higher Returns: One of the primary benefits of investing your money is the potential for higher returns compared to keeping your money in a savings account or other low-risk investment vehicles. Historically, stocks and other investments have generated higher returns over the long term, although past performance is not a guarantee of future results.
Hedge Against Inflation: Investing your money can also help you hedge against inflation, which erodes the value of your money over time. Inflation causes prices to rise, so the same amount of money will buy less over time. Investing in stocks, bonds, real estate, and other assets can help you keep pace with inflation and maintain your purchasing power.
Compound Growth: Another benefit of investing is the power of compound growth. When you invest your money, you earn returns on your initial investment as well as on any earnings that accumulate over time. Over the long term, compound growth can significantly increase the value of your investment.
Diversification: Investing also allows you to diversify your portfolio, which can help reduce risk. By investing in a variety of asset classes, sectors, and geographies, you can spread your risk and minimize the impact of any single investment performing poorly.
Tax Benefits: Certain types of investments, such as retirement accounts and tax-free municipal bonds, offer tax benefits that can help you save money on taxes. By taking advantage of these tax benefits, you can keep more of your investment earnings and potentially achieve your financial goals faster.
Achieving Financial Goals: Finally, investing your money can help you achieve your financial goals, whether it’s saving for retirement, buying a house, or paying for your children’s education. By investing regularly and consistently, you can build wealth over time and work toward achieving your financial objectives.
There are so many companies that you can invest in and to save you the hassle of searching, we have identified the best 15 investment companies in South Africa that you can trust with your hard-earned money.
AllanGray is one of the largest well-known investment companies, since its establishment in 1973 its aim has always been to create financial security for anyone willing to invest with them.
The company has grown to become one of the largest investment firms in South Africa, managing more than R600 billion in assets. Allan Gray’s investment philosophy is centred around long-term value investing, and the firm is known for its flagship equity fund, the Allan Gray Equity Fund, which has consistently outperformed its benchmark over the long term.
They offer a wide range of investment plans and products such as saving for retirement or a child’s education and tax-free investment. They also offer offshore investment services to anyone who would like to venture into the global market.
Stanlib has been in operation since the year 2002 and it started as a joint venture between Standard Bank of South Africa and Liberty Life.
Since its inception, they have achieved a lot and have grown in its capabilities to meet the needs of its clients over time and offer alternative ways to achieve investment growth and capital preservation.
They offer expertise across a wide range of investment disciplines and today they manage around R600 billion worth of assets. They have offshore investments for those who want to put their money in foreign assets.
Their products are classified under income, stable growth, and offshore, making it more convenient for investors to choose the fund they would like to invest in.
3. Prudential Investment Managers
To achieve your financial goal investing with Prudential Investment Managers would not be a bad idea as they are one of the largest investment companies, holding over R250 billion worth of funds.
They offer a wide range of unit trusts that include equity funds, balanced funds, property funds, income funds, tax-free funds, and offshore investments.
Prudential Investment Managers is part of the larger Prudential Group, which is a global financial services company with a presence in over 40 countries.
Coronation is best for people that would like to invest for retirement purposes.
Founded in 1993, they are focused on asset management and in December 2020 it was recorded that they manage R594.7 billion in client assets.
They offer pension and provident funds, medical schemes, unit trusts, banks, insurers, and other fund managers.
They also manage assets for a growing number of international retirement funds, endowments, and family offices.
With nearly 200 years in operation, Investec has been helping a lot of people meet their financial goals.
It is amongst the best companies that can assist you in growing your wealth with optimal returns on your capital.
Investec Asset Management is a global investment management firm with its headquarters in South Africa. The company manages over R1.4 trillion in assets and has a strong presence in both developed and emerging markets.
Investec Asset Management offers a range of investment solutions, including equity, fixed income, multi-asset, and alternative investments.
6. iTransact Fund Managers (IFM)
Intrasact Fund Managers offer a collective of investment schemes with various investment objectives ranging from value investing to ultra-conservative.
They provide a range of funds open to investment from both retail and institutional investors.
Absa is also part of the best investment management companies in South Africa.
Depending on what you would like to achieve with your money, their investment products, expertise, and capabilities will help you grow your money, generate an income and also protect your capital.
Their investment options include unit trusts, tax-free investments, retirement annuity funds, investment accounts, offshore investments, and linked endowments.
8. Old Mutual
Old Mutual is one of the oldest and leading investment managers in Africa, offering a wide range of comprehensive investment capabilities.
They have been in the game for the longest time and have assisted millions of South Africans to achieve their goals.
The company offers a wide range of investment solutions, including equity, fixed income, and alternative investments.
Old Mutual Investment Group is part of the larger Old Mutual Group, which is a diversified financial services company with a presence in over 13 countries.
9. Foord Balanced Fund
Similar to Coronation, Foord Balance Fund excel in retirement investments.
Their main goal is to grow retirement savings by meaningful, inflation-beating returns over the long term.
Foord Asset Management is an independent investment management firm that has been operating since 1981.
The company manages over R75 billion in assets and offers a range of investment solutions, including equity, fixed income, and multi-asset funds.
Foord Asset Management is known for its focus on value investing and has a strong track record of delivering superior long-term returns for its clients.
10. Fairtree Capital
Since its inception in 2003, Fairtree has achieved great things with the latest being the Best SA Equity General Fund on a risk-adjusted basis.
Sanlam Investment Management is one of the largest investment management firms in South Africa, managing over R650 billion in assets.
The company offers a wide range of investment solutions, including equity, fixed income, and multi-asset funds.
Sanlam Investment Management is part of the larger Sanlam Group, which is a diversified financial services company with a presence in over 30 countries.
12. PSG Asset Management
PSG Asset Management is a boutique investment management firm that focuses on delivering consistent long-term returns for its clients.
The company manages over R100 billion in assets and offers a range of investment solutions, including equity, fixed income, and multi-asset funds.
PSG Asset Management is part of the larger PSG Group, which is a diversified investment holding company with a presence in over 10 countries.
Momentum is a leading investment management firm in South Africa, managing over R350 billion in assets.
The company offers a range of investment solutions, including equity, fixed income, and multi-asset funds.
Momentum Asset Management is part of the larger Momentum Metropolitan Holdings, which is a diversified financial services company with a presence in over 12 countries.
Nedgroup Investments is a subsidiary of Nedbank Group, one of the largest financial services groups in South Africa.
The company manages over R220 billion in assets and offers a range of investment solutions, including equity, fixed income, and multi-asset funds, as well as offshore investment options.
15. Camissa Asset Management
Camissa Asset Management is an independent investment management firm that focuses on delivering superior long-term returns for its clients.
The company manages over R70 billion in assets and offers a range of investment solutions, including equity, fixed income, and multi-asset funds, as well as impact investing options.
In conclusion, South Africa is home to a number of reputable investment companies that offer a range of investment solutions to suit various risk appetites.
These firms are known for their expertise in local markets, but many also have a strong global presence. Investors in South Africa have a wealth of options when it comes to choosing an investment company, and the top investment companies listed here are among the best in the country.
It is important for investors to do their own research and due diligence when selecting an investment company to ensure that they choose a firm that aligns with their investment goals and objectives.
Knowing that you have put your money in an investment company can give you confidence and security for your future, knowing that you won’t have to worry about retirement, your children’s future, or whatever the case may be.
Your money will be handled by professionals who will easily pay off with the accumulated interest when you claim. The above-mentioned investment companies can be trusted so your money will be in good hands.
Do not waste any time, start working on your financial growth by putting your money at the right companies.