Satrix Investment Plan

Buying a single share can be very risky. Buying a few shares reduces that risk. Buying all of the Top 40 shares on the JSE  spreads your risk across the entire South African economy. With Satrix you can buy one security and own the market.

header-logo

“Own the performance of the JSE, with a single low-cost investment.”

You can start small

Satrix is one of the most cost effective ways of getting exposure to the top shares on the JSE, even if you only have a very small amount available to invest. Lump sum investments from as little as R1000 once off.

Debit order system

You can also start without investing a once-off lump sum, but rather with monthly debit order, starting at as little as R300pm. So once a month that amount will be deducted from your bank account, and used to buy Satrix units.

Build a nest egg

If you don’t have an existing pension plan or you want to start saving for a longer term goal, Satrix might be the solution you are looking for. You can also select between different Satrix products, like the Satrix 40 [Top 40 companies on the JSE], the Satrix DIVI [top dividend paying companies on the JSE], and many more.

Dividends

You will also receive dividend distributions from the units that you are holding. These can either be paid out to you, or you can select to re-invest them to buy more units. Re-investing would mean that you start a slow but sure compounding/ snow-balling effect of accumulating more units – and this can be a very powerful strategy over a period of time.

header-logo

“An easy & cost effective way to get into the market.”

Up and down

Looking at the last 10 years performance of Satrix 40, one can see that the trend is up. But returns are not guaranteed. You can see a big dip with the 2008 crash where the prices went down by almost 50%. But also note that it has fully recovered within 3 years, and another 2 years down the line it is showing a substantial increase – the market has more than doubled from the 2008 low of almost R16, to the current level of almost R38 [done on 31 May 2013] – showing an annual increase of over 20% year-on-year. In fact, looking at the STX40 data from 2000 to mid-2013, it shows an average annual [January-December] increase of just over 13% every year; which is better than you would have received in any savings account in a local bank.

STX40 2013-05-31

Satrix 40 – 10 year chart, image © 2013 Bloomberg Finance LP.

Constituents

You can fine-tune your strategy by selecting either of the following funds:

  • Satrix 40 — Top 40 index: biggest companies on the JSE according to market cap
  • Satrix DIVI — a portfolio of JSE companies paying higher than average dividends
  • Satrix FINI — Financial 15 index: banks & insurers
  • Satrix INDI — Industrial 25 index: health, industrials, consumer goods, telecomms
  • Satrix RESI — Resources 10 index: general mining, platinum, gold, coal, oil, gas
  • Satrix SWIX — reduces weightings of resource & dual-listeds in the Top 40 by +-50%
  • Satrix RAFI — RAFI 40 Index: based on dividends, cash flow, sales & value; not mkt.cap

Need more info

Need more information?

Traders’ updates

Quoted

Subscribe via Email

Enter your email address to receive notifications of new posts by email.

Free demo account

platform
Open a free demo account and play around with 100k for 20 days in order to test the platform. Trade local and international instruments. Get it now.