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SATRIXNOW

Online ETF and UT platform

Administered by EasyEquities

Investing for Your Child

Investing on behalf of your child - or other children in your life - can give them a fantastic head start in life.

Minors have the benefit of time on their side; the earlier they start their investment journey, the more time they can spend in the market, harnessing the power of compounding

Why Open a SatrixNOW Account for Your Child?

Open a Minor Account

Here are the Easy Steps to Open Your Child’s Account

Minors are not allowed to open a SatrixNOW account independently. Here is how to open it:

The activation of a minor’s account has to be initiated via a parent or legal guardian’s FICA-verified SatrixNOW account
It’s as simple as going to the parent or legal guardian’s “Profile” menu and selecting “Add Your Child’s Account.”

Complete the four easy registration steps. Some tips to take note of:

There are default options you would need to deselect if they do not apply to you (minor’s address and source of funds).
It would be ideal for the child’s account to be linked to their own personalised email address. Note that we exclude minors from marketing communications.

Funding your child’s account is simple:

You can fund the minor’s account by making an EFT deposit, using their account’s unique reference.
Alternatively, purchase an investment voucher, which, like an EFT deposit, doesn’t require the buyer to have a SatrixNOW account. This means that your family and friends can contribute to the minor’s investments.
Remember to invest funds into any Satrix ETF or unit trust once the account is funded.

You may consider making regular investments for your child. This can be done by:

Creating a stop order, which is actioned within the guardian’s bank account, into their SatrixNOW account
Mandate a SatrixNOW debit order by completing the required consent form. You can download the Debit Order form and submit it to helpme@satrixnow.co.za.

Tax-Free Investing for Minors

Minors are allowed to have and be invested in a Tax Free Savings Account(TFSA).
Here are some TFSA facts to consider:

The Compound Effect

Compound growth is when investment returns generate additional returns, over time. The size of these returns depends on the size of the initial returns.

In a Tax Free Savings Account (TFSA), where dividends, interest, and capital gains are not taxed, the full value of returns can be reinvested.

This exemption accelerates the compounding process and therefore enhances the potential for long-term growth.

The Value of Time

Ultimately, the TFSA works best with time. In principle, minors have a superpower they can harness: time.

With more years ahead of them, they are better positioned to benefit from the cumulative effect of tax-free compounding.

The longer investments are held, the greater the opportunity for compound growth, especially when returns are reinvested without the drag of taxes.

Equity-Access with Less Risk

Equities, as an asset class, tend to outperform many other investment types and inflation over the long term.

Equities also come with volatility over the short term. This is why government mandated that the TFSA only allows for collective investment schemes (CIS) or investment “funds” such as ETFs or unit trusts.

These funds offer diversification by holding a mix of assets, reducing the impact of individual market fluctuations while still providing access to long-term equity growth.

Contribution Limits

Investors cannot exceed the R36 000 annual deposit limit on the TFSA, with a lifetime contribution limit of R500 000.

These limits apply strictly to the amounts deposited into the account and not to the investment returns generated within it.

Earnings such as interest, dividends, and capital gains do not count toward these thresholds. Exceeding the deposit limits may result in harsh penalties imposed by the South African Revenue Service (SARS).

FAQs About the SatrixNOW Minor Account

Can I open multiple accounts for different children?

Yes! You can also manage all minor accounts via your own account. See how to here

What happens when they turn 18?

The account converts to an adult account under their control.

What can minors invest in?

ETFs

Track the performance of indices like the FTSE/JSE Top 40 or MSCI World Indices

Unit Trusts

Professionally managed funds for long-term growth

Tax Free Savings Account (TFSA)

Invest up to R36 000 per year — no tax on growth or withdrawals

Retirement Annuity (RA)

Long-term savings with tax benefits — yes, even for minors

Can family and friends contribute to their investment accounts?

Yes! Grandparents, godparents, other family members, a friends can contribute too. There are three easy options:

Recurring Stop Order

Flexible and initiated via contributor’s bank account

3rd Party Debit Order

Fixed amount actioned on Satrix-side via admin service provider, First World Trader. Download the Debit Order Form here and send completed forms to helpme@satrixnow.co.za

Buy a Voucher or More

Once-off or ad-hoc purchase to be redeemed in the recipient’s account

Ready to Start Investing for Your Child?