This fund returned +96,4%in 2023!

Investing is not easy especially for those who panic easily. I always say when you invest your money in offshore tax free investments, it is like going on a rollercoaster – sit down and wait until the joyride is over then stand up and leave. In investments, when the markets are down / turbulent, sit down and wait things out. Don’t lock the paper losses due to market volatility and make them actual losses. Like a rollercoaster, the markets will be up again. When the markets are up, withdraw the money if you need the funds.

Unfortunately, investors do the exact opposite. When the markets are good – no one wants to withdraw their money and when they see losses (albeit short term, paper losses), they insist on withdrawing because of fear.

Below is an example of a real customer who sat through the rough ride and fortunately for her, she needed the money at a time when the markets had recovered from COVID-19 shocks and Russia / Ukraine war jitters.

So in just 23 months after the start date of the investment, the customer had invested a total of R22 325 and on this, he made a profit, net of fees of R12 559 = R34 884 – R22 325. The ride was not smooth though.

Fund summary

• This fund returned +66,4% in 2020, at the height of the COVID-19 pandemic and was the darling of investors
• In 2022, the returns were a disappointing, reporting  -31,8%. Sadly some investors decided they could not handle the rollercoaster and decided to disinvest. This was the worst decision they could have taken but ultimately, we must carry out customer instructions
• In 2023, the fund went all the way up and gave investors +96,4%.

Guess what, everyone wants to invest in this fund. So when you want to invest in offshore tax free investments, remember that you must have the patience and courage to stay put when the rollercoaster is turbulent.

With that, this is the time to invest in those off shore tax-free investments.

If you have an existing tax free investment or retirement annuity, please contact us to top them up before the end of the tax year.