“I am currently saving R3000 in my Investment Advantage account with Absa and R200 on my 32days notice account with ABSA. I feel that I’m earning little interest in those accounts and I would like to invest in shares,” writes Godfrey who is living in a rural area where it is difficult to access information.

Maya replies: The length of time you want to invest is important. Last week we wrote about how the type of investment will depend on the length of time before you need the money.

If you want to save for five years or more, then a good unit trust fund where the fund manager can invest in across equities, cash, bonds or property is a good option.

Remember that with any investment that offers the potential of a return higher than cash you are taking risk and the price can go down in the short-term. The markets are very fragile at the moment and most fund managers are recommending a fund with a diversified portfolio of assets including offshore exposure as they feel the South African markets are expensive.

Unit trusts to consider include companies like Allan Gray Balanced Fund, RE: CM Global Flexible Fund, Coronation Balanced Plus and Investec Opportunities fund. These funds are able to invest across a range of asset classes and therefore reduce the risk of your investment. You are able to invest in any of these funds via their websites so you do not have to go into their offices.

Another alternative is to go to www.investonline.co.za where you fill in a risk questionnaire where they put together a portfolio of unit trusts suited to your needs. The minimum is R500 per month.

It would be worth continuing your R200 a month into your 32 day account as an emergency savings fund that is easily accessible.