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Updated: 10 months ago | Investments

Investment companies in South Africa - let us look at the importance of using investment firms in this reading, what are investment companies and how they can help you.

One of the good reasons why one should learn about this is simple, sometimes we are stuck with a lumpsum of money that we want to grow and make this money work for us, but we don’t know how.

This is where one can consider an investment firm, unlike other platform and sources of growing your funds, saving money with investment firm is less risky, why?

Because their job is to ensure that they take care of you funds, their job is to make sure that you get you return on investment.

Many people use investment firms to save themselves from headaches, one of them being trying to start a business which might not work.

Another headache is trying to get involved with opportunities which might be too risky, like forex trading and getting involved with cryptocurrencies for that matter.

Why not leave someone else to do it for you, investment firms will ensure that your hard worked money is invested in good sources and platforms, simply because their responsibility is to ensure that your money is safe.

Investment Companies in South Africa

What are investment firms?

An investment company is an entity that is responsible for investing in securities.

These entities are not involved in any baking finance but primarily involved in the selling and buying of goods, assets like properties and so on.

So, in essence, this companies are responsible for pulling resource in a form of investment from investors and reinvesting these resources.

These entities will invest these resources in marketable securities and all types of securities money-making instruments.

Before we carry on this topic, below is a list of popular and best investment companies in South Africa.

Investment Companies in South Africa 2021

  • Sanlam
  • Allan Gray
  • Safrika Holdings
  • Coronation
  • IFM iTransact Fund Managers
  • Mineworkers Investment Corporate
  • Thebe Investment Coronation
  • African Rainbow Capital
  • Richmark Holdings

What does an Investment Management firm do?

The investment firm’s responsibility is to hold securities of other investors or companies solely for making investments to grow these funds.

There are people who are called investment managers, who’s responsibility is to ensure that the funds invested are pulled in right securities to create a portfolio.

Types of Investment Companies

Investment Trusts – in this type of firm, issues a fixed number of shares through initial public offerings.

These are approximately the openly traded firms that raise a fixed amount of capital through the issue of a fixed number of shares traded on the stock exchange.

In the closed-end management investment companies, the shares are bounded, and it is for that reason the investors cannot buy as many shares as they want and so on, they cannot sell their existing shares before the expiry of the scheme.

Mutual Funds - The Open-end mutual funds are greater for the shareholder since it allows them to purchase as many shares as they want and can easily redeem it at their disposal.

Unit Trusts - share the combination of both the mutual funds and investment trusts.

investment firm detain the portfolio of shares, stock, bond, and other money market instruments purely for investment reasons.

In conclusion, investment companies are great security for your money, if you are looking for a safe place to save money and have greater returns on investment, use investment firms.

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