Updated 12.01.2022

Top 5 Investment Companies in South Africa

Investing involves allocating money and resources to specific financial schemes, property, stocks, and businesses with the aim of earning profits over a specified period. You can choose to invest on your own or through investment companies. If you go with the latter option, finding the top investment companies in South Africa should be your first priority.

Like any financial endeavor, investing has varying risks. The nature of these risks change depending on the type of investment you make. For instance, investing in stocks has the risk of inflation and marketability. When making individual stocks picks there is also the chance you lose all your money while at it. Investing in property or real estate, on the other hand, carries asset-level risk and general market risk among others. However, even with these risks, investing your money wisely yields good returns over time.

Why Should You Invest Your Money with an Investment Company?

Arguably, there are two ways of generating cash in today’s world. One, is by working for yourself or someone else to earn income. Two, is by investing your money or assets so that they gain value over time or earn dividend income. Ideally, most people invest their money through investment companies. If you save money and simple leave your cash with the banks, the value of that cash will reduce over time due to current low interest rates and the impact of inflation.

Investment companies, also known as fund companies, are trusts or corporations that pool investor resources and invest it in financial instruments or securities. This is done through mutual funds, also known as, open-end funds, or through a closed-end fund. Each fund will have a fund manager that makes the investment decisions for that fund. Before putting your money into an investment company, it is important for you to understand how it operates. Even so, investing money through a fund company has a many benefits, including:

Access to invest into infrastructure and private equity among other hard-to-sell financial assets
Protection from major market forces. Since investment companies invest pooled resources with a mutual fund, they have better financial muscle and options to withstand major market forces. For example, investment companies can borrow money for investment.
You can buy or sell stocks anytime during the normal trading period
A good oversight body in the form of board of directors who ensure investor interest is protected
Closed-end investment structure that allows the company to take advantage of longer-term investment opportunities without the interference of investors who’d opt out of the investment company by selling their shares

Top Investment Companies in South Africa 2021

Here are the top investment companies in South Africa where you can safely put your money in.

Allan Gray

Established in 1973, AllanGray has evolved to become one of South Africa’s biggest financial services company and best investment company. It has a wide range of investment products that investors can buy into for capital gains and other financial benefits.

The company has two main investment categories. These are unit trust investments and group savings. Under the unit trust, investors can:

Save for their retirement with their pension fund
Begin a basic investment
Transfer or start a tax free investment
Invest offshore
Earn income in your retirement years
Save for your children’s education

Allan Gray is one of the most popular investment companies in SA because of its stellar performance throughout the years since its establishment. Their main office is in Cape Town. They have several branches spread across South Africa. Apart from unit trust investments, Allan Gray offers the Allan Gray Balanced Fund. This a flagship unit trust product of the company that’s recommended for long-term investors. The products offered under the Allan Gray unit trust investment include:

How to Apply

Load the Allan Gray website on your internet enabled device and go to the create investment page by clicking on “invest now“
Choose an account to match your objective
Choose your unit trust
Key in your details
Confirm your details and submit
Finalize your investment

Allan Gray Contact Details

Open: Monday to Friday from 07:30 to 17:30
Phone: 0860 000 654 (Callers within South African)
Phone: +27 (0) 21 415 2301(Callers outside South Africa)
Fax no: +27 (0) 21 415 2492
Email: info@allangray.co.za

You can also contact them through the chat widget found on their website.

Coronation

Coronation is an investment company founded in 1993 by a group of investment professionals. The corporation is focused on asset management to deliver competitive returns for SA investors. Currently, the group manages around R629 billion (as of March 2021) worth of client assets.

Coronation offers investment options that encompass local and international markets. They categorize their instruments under long-term growth, income, and growth income to make it easier for investors to choose which product to get based on their financial targets. With offshore investments, Coronation provides equity-only and multi-asset options. The company also offers property investments and cash deposit alternatives to suit different types of investors. The products offered by this company include:

How to Apply

To apply, download the form of the investment option you’re interested in. You can submit it to them via email afterward.

Coronation Contact Details

Phone: 0800 22 11 77
Email: clientservice@coronation.com

You can also send your concerns and queries to them through their online contact form.

IFM iTransact Fund Managers

The IFM investment company started in 1964 and became part of the JSE-listed Indequity Group in 2001. IFM offers a few Collective Investment Scheme portfolios. IFM offers investment options to both retail and institutional investors. It’s products include:

How to Apply

You can download application forms online and submit them through email.

IFM Contact Details

Landline: +27 (0) 86 111 6075
Fax: +27 (0)11 561 6812
Email: admin@itransactfm.co.za
Postal Address: PO Box 4769, Randburg, 2125

Prudential Investment Managers

Prudential offers a range of unit trusts suited to every risk profile and profit targets of SA investors. They manage a wide range of balanced funds, equity funds, income funds, property funds, tax-free accounts, and offshore investments. They’re currently holding over R234 billion (as of 30 June 2020) worth of funds, making them one of the largest investment companies in South Africa. Some of the company’s products include:

Prudential Global Balanced Fund (Denominations in Rand, USD, Namibian Dollar, or Sterling)
Prudential Balanced Fund
Prudential High Yield Bond Fund
Prudential Enhanced Income Fund
Prudential Money Market Fund
Prudential 7% Target Income Fund

How to Apply

To apply, simply complete their online application form. If you’re not sure where to invest, you can use their fund selection tool and the goal calculator to determine the best investment option for you.

Prudential Investment Managers Contact Details

Phone: 0860 105 775
Email: query@prudential.co.za

You can also get in touch with them by filling out the online contact form on their website. You can also use the chat widget available on the page.

ALSO LEARN: How to Make Tax-Free Investment in South Africa

STANLIB

STANLIB was established in 2002 as the offspring of the joint venture between Liberty Life and Standard Bank. Their rapid growth, quick technological adaption, and continuous expansion of product offers catapulted them to be one of the favorite investment companies in South Africa. Today, they manage around R614 billion worth of assets (as of March 2021). STANLIB handles a wide range of asset classes including fixed income, equities, and credit alternatives. They also have offshore investments for those who are interested in putting money in foreign assets. STANLIB classifies its products under income, stable growth, growth, and offshore to make it more convenient for investors to choose which fund to invest in. STANLIB funds include:

STANLIB Money Market Fund
STANLIB Extra Income Fund
STANLIB Balanced Cautious Fund
STANLIB Balanced Fund
STANLIB Global Balanced Fund

How to Apply

To apply, select any of the appropriate forms available on their website and submit your complete details through email.

STANLIB Contact Details

Phone: 0860 123 003
To check balance: Send balance to 43939
Email: contact@stanlib.com
Report Fraud: fraud@stanlib.com

You can also contact them by filling out the form on their page.

Conclusion

Putting your money in investment companies gives you the confidence and security that your money will be safely handled by professionals. You’ll also be protected by South African regulations when you invest in the products offered by these companies, so rest assured that your money is in good hands. Investment companies are the perfect choice if you don’t want the hassle of growing your portfolio by yourself.

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MoneyToday South Africa is a financial website aims to assist consumers with comprehensive information on personal finance, loans, insurance, investment opportunities, financial guides, tips and comparison of a large number of finance and insurance companies on the South African market.

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