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Start small
Setting up a debit order allows you to start small and make regular contributions . You will avoid the temptation to access money allocated to savings and will be building up your savings over time . Making regular incremental increases to your monthly contributions can have a positive effect on your investment over time versus investing R1 000 or R10 000 once-off with no further top-ups . Similar , if you were to invest R250 with no increases over 10 years , you would have had about R39 000 less than if you had increased it regularly over time .
R90 000
R80 000
R70 000
R60 000
R50 000
R40 000
R30 000
R20 000
R10 000
R0
Different investor scenarios over a 10-year period
31 Jan 2010
30 Apr 2011 31 Jul 2012 31 Oct 2013 31 Jan 2015 30 Apr 2016 31 Jul 2017 31 Oct 2018 31 Jan 2020
Source : PPS Investments
Investor A ( R1 000 or R10 000 once-off ) Investor C ( R250 pm with regular inceases )
Investor B ( R250 pm and no increases )
STeFI Composite Cash Index
5 Partner with a trusted financial adviser
During times of uncertainty , it is critical that you consult with your financial adviser to help make informed decisions aligned to your holistic portfolio . Your financial adviser can help craft a solid financial plan with a long-term view . Most PPS members have a financial adviser , and despite the headwinds during 2020 , only 2.1 % of PPS members reduced their risk profile . This indicates that members remained focused on their financial plan and stayed invested rather than responding to market events and short-term volatility – an approach that could help to ensure achieving financial goals over time .
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Diversification is key
Another important aspect is a diversified portfolio that provides an opportunity to create a smoother return profile over the long run as it is better able to withstand fluctuating market conditions . A blend of asset managers is best suited to take advantage of opportunities , both locally and abroad , at different times in the cycle , offering optimal diversification to augment your portfolio that can be achieved through our multi-managed solutions which are positioned to take advantage of any potential changes .
The information , opinions and any communication from PPS Investments Group , whether written , oral or implied are expressed in good faith and not intended as investment advice , neither does it constitute an offer or solicitation in any manner . Furthermore , all information provided is of a general nature with no regard to the specific investment objectives , financial situation or particular needs of any person . It is recommended that investors first obtain appropriate legal , tax , investment or other professional advice prior to acting upon such information .
PPS Investments Group is a subsidiary of Professional Provident Society Insurance Company Limited , a Licensed Insurer and Financial Services Provider . PPS Investments Group consists of the following authorised Financial Services Providers : PPS Investments ( Pty ) Ltd (“ PPSI ”), PPS Multi-Managers ( Pty ) Ltd (“ PPSMM ”) and PPS Investment Administrators ( Pty ) Ltd (“ PPSIA ”); and includes the following approved Management Company under the Collective Investment Schemes Control Act : PPS Management Company ( RF ) ( Pty ) Ltd (“ PPS Manco ”). Financial services may be provided by representative ( s ) rendering financial services under supervision .
www . pps . co . za / invest
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