Yesterday’s studio guest was Cheslyn Francis BA, RPE, MBA. He is a portfolio manager and head of Private Clients at Dynamic Wealth a leading asset management company.
I asked Cheslyn his view on clients investing directly in the JSE
The reason that most people don’t invest directly is two fold. Firstly an investor needs sufficient capital to be able to buy a few shares in different sectors of the market and to be able to justify the costs of a stock broking account. The second reason people tend not to invest directly into the market is a matter of competence and fear of the unknown.
This is where the unit trust industry found its niche. It offered the layman an investment vehicle that employs a portfolio manager to manage selected securities held in trust. The purpose of Unit trusts was to open up investing on the JSE to the smaller investors, who would normally not have had enough capital on hand to do so. Unit Trusts allow investors to access the JSE with small contributions from as little as R50 p/m.
Investors with larger sums of money from R100 000 plus should consider investing into the JSE by setting up a stock broking account and appointing a portfolio manager to manage their portfolio.
His view is that there is still value in equities depending on an individuals risk profile. I will be talking to Cheslyn regularly in the future for deeper insights and views on the JSE.
If you have over R100 000 and would like to start an actively managed share portfolio contact me and I will arrange this for you.
