Five Guidelines On How To Start Your Investment Journey

Satrix, South Africa’s pioneering index-tracking business, has proudly partnered with Money Smart Week 2022 to explain how the everyday investor can begin their investment journey in five simple steps. 

Investing can be a daunting task for an investor who is still wet behind the ears, but it doesn’t have to be. Equipping yourself with the necessary industry knowledge and constantly practicing will help you hone your investing skill. Time is the most important factor when it comes to investing; your future self will thank you for starting as early as you did.  

Below, Duma Mxenge, Business Development Manager at Satrix, takes you through how to start your investing journey:  

Set aside a manageable principal amount. This can be as little as R10 each month deposited into your savings account. You can gradually increase this amount as you see fit.  

Learn how the stock market works. Understanding how the stock market is affected by changes in the economy will assist you in managing your investment.  

Create a detailed plan and time frame for your investments. Having a clear idea of what you wish to achieve and by when, will keep you grounded and on track to achieve your goals.  

Have a diversified investment portfolio. Once you have found your footing in the investment space, investing in different asset classes (assets are the different types of things you can invest in, e.g property, stocks, bonds, cash) and industries will mitigate the risk of your investments tanking, should the economy take on a downward trajectory.  

Always be willing to learn. The world of investing is a dynamic and interesting space, with so many niches to tap into. Take the time to learn about how your investment personality is affected by the ups and downs of investing, how to keep your cool during volatile market trends and knowing which investment is worth committing to.  

Disclaimer: 

Satrix Investments (Pty) Ltd is an approved FSP in term of the Financial Advisory and Intermediary Services Act (FAIS). The information does not constitute advice as contemplated in FAIS. Use or rely on this information at your own risk. Consult your Financial Adviser before making an investment decision. 

While every effort has been made to ensure the reasonableness and accuracy of the information contained in this document (“the information”), the FSP’s, its shareholders, subsidiaries, clients, agents, officers and employees do not make any representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaims all liability for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance upon the information.