Get a managed portfolio for just R100

managed portfolioYou really want to invest in the stock market but you don’t have enough money each month to buy expensive shares. Fractional investing is a cheap and easy way to invest at lower costs.

After fielding numerous calls from listeners on Gareth Cliff’s CliffCentral show, Anthea Gardner, managing partner at Cartesian Capital, realised there was a definite gap in the market for people who wanted to invest in a managed portfolio, but with small amounts. As the managing partner at an asset management company, she brainstormed a few ideas with Gareth and came up with a new product called #invest.

Gardner insists that it was fortuitous finding the EasyEquities platform which allows fractional share investing and who were in the process of creating managed accounts through their Bundles offering.

“With #invest, you’ll have access to a managed portfolio, share education resources, Cartesian Capital research and a monthly market update. Plus, you’ll be able to check in on your investments live weekdays during The Gareth Cliff Show in The Money Shot,” she says. Gardner says partnering with the EasyEquities platform allows #invest to offer you a reduced cost of transacting. “Typically, you would need to invest R1 million before an asset manager will handle your investment portfolio. We are introducing this offering to clients from just R100,” she says.

Four investment portfolios

#invest offers you four different investment portfolios:

  1. Conservative Income – this portfolio is invested entirely in bonds and is essentially aimed at preserving your capital. Gardner says it is well suited to someone who is investing or saving with a three to 18-month timeline and aims to offer returns higher than those you would earn from an ordinary bank savings account.
  2. Stable (growth and income) – this portfolio offers you exposure to longer-dated bonds, which are more risky than short-dated bonds in the conservative income portfolio. “The typical investor here would be someone with five years to retirement or someone with a three to five year saving timeline,” Gardner says.
  3. Growth (balanced) – this portfolio is essentially the same as a balanced fund, with 75% exposure to equities, and 25% exposure to bonds. Gardner explains that investors get the stability of a bond portfolio, with exposure to blue-chip stocks.
  4. Aggressive Growth – this portfolio is a pure equity portfolio and includes stocks such as Aspen and Mediclinic, but also has exposure to smaller cap stocks to generate alpha returns.

What it costs

EasyEquities’ brokerage and statutory costs are 0.64%. In addition, #invest will cost 0.85% to invest in the Conservative portfolio, 0.9% for the Stable, 1% for Growth and 1.25% for Aggressive Growth.

How to invest

Step one: Register on the EasyEquities platform. You will need to have copies of your FICA documents ready to upload: a copy of your ID, your proof of address and confirmation of your bank account details. You can email these documents to newaccounts@easyequities.co.za.

Step two: Fund your account by going to the “My Account” dropdown and click on “Deposit”. You can choose to do this by EFT or by filling in your bank details for a debit order if you are planning to make a monthly investment.

Step three: Once the funds have reflected in your EasyEquities account, go to the “Invest” dropdown and then click on “Baskets and Bundles”.

Step four: Browse bundles. Remember #invest offers you four different investment portfolios.

This article first appeared in City Press.