By Wayne McCurry – Recent (and ongoing) Market Turmoil
As all of us are aware financial markets, specifically equity, have been very volatile lately, with material falls both locally and globally. This coupled with severe currency fluctuations, has now started to cause anxiety for investors. I will try and make some sense of all of this by explaining the reason, possible outcomes and what investors must consider.
By Ingé Lamprecht
Following the introduction of tax-free savings accounts on March 1, product providers have started their marketing efforts and a wide variety of options are now available.
Tax-free savings accounts offer South Africans the opportunity to invest up to R30 000 per annum (R500 000 over a lifetime) and investors won’t pay any tax on the returns (capital gains, dividends and interest) in these accounts.
But as investors start to ponder the pros and cons of using tax-free savings accounts in their personal investment portfolios, a number of important questions have been raised.
By Investopedia Staff AAA
You might be familiar with the risk-reward concept, which states that the higher the risk of a particular investment, the higher the possible return. But many investors do not understand how to determine the risk level their individual portfolios should bear. This article provides a general framework that any investor can use to assess his or her personal risk level and how this level relates to different investments.
This is a general concept underlying anything by which a return can be expected. Anytime you invest money into something, there is a risk, whether large or small, that you might not get your money back. In turn, you expect a return, which compensates you for bearing this risk. In theory the higher the risk, the more you should receive for holding the investment, and the lower the risk, the less you should receive.