Capital security in volatile times

Many investors have seen their wealth preservation strategies frustrated by a stock market that has moved sideways, delivering below-inflation returns for several years in a row.

Contrary to traditional wisdom, better returns are now coming from more secure investments that provide the compelling combination of capital security and high growth in a volatile local investment environment.

Since its establishment in 1990 Fedgroup’s Secured Investment has offered investors a high rate, fixed for five years, on investments of R5 000 or more. Although Secured Investment it has been around for nearly 30 years, its value is particularly apparent in the current climate.

One of the reasons why Secured Investment has stood the test of time is its flexibility. Investors have the option of withdrawing their monthly interest to earn income at the nominal rate of 9.5% per year or reinvesting for growth at the effective rate of 12.1% per year.

The income option has proven popular with retirees over the years, as it protects their retirement capital while paying a fixed monthly income at a stage when short-term volatility is highly undesirable.

Secured Investment is backed up by property, which is why Fedgroup is able to offer clients a secured effective interest rate of 12.1% per year. In addition to the high, fixed interest rate and capital security, investors also pay no fees, meaning the full value of their investment amount earns interest from day one.

Fedgroup boasts track record spanning three decades of always paying clients their monthly interest in advance. This is due to an intimate understanding of the property landscape which Fedgroup uses to the advantage of its clients.

While the core product has remained the same, Fedgroup has incorporated advancements in technology to automate and improve admin efficiency, ensuring the delivery of a continuously relevant product. This is in stark contrast with traditional providers, where legacy systems and inefficiencies drive up the cost of delivering their products. This is the reason why Fedgroup is constantly able to offer interest rates that kick dust in the eyes of other fixed-term investment products.

This commitment to technology also means that investing in a Secured Investment is quite simple. The investment form can be downloaded from the Fedgroup website or obtained from one of our accredited brokers. Then it is a simple matter of completing the form, choosing your investment amount and deciding between the income and growth options.

At the end of the five-year investment period, you can choose to reinvest your money or have it paid out. You also have the option leave the money to earn interest at the matured rate, where you can withdraw all or part of it at any time.

Fedgroup will notify investors of the maturity date three months prior in order to allow sufficient time for you to decide whether to have the money paid out or reinvested.

Because Secured Investment is licensed by the FSCA and governed by the Collective Investment Schemes Act, which also governs all unit trusts, the strict rules ensure prudent and transparent corporate governance, making it an extremely low-risk investment.

For more information please visit https://www.fedgroup.co.za/wealth/secured-investment or contact us at SIcontact@fedgroup.co.za or 0860 065 065.