2019-09-01 Cosmopolitan South Africa

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PROMOTION

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COSMOPOLITAN.CO.ZA | SEPTEMBER 2019

s J u s t

a Have

n(ds)

We busted the 5 biggest investment myths

MYTH 3: Investing in

a unit trust should only

be for saving towards

your retirement

TRUTH: According to

the 2019 Old Mutual

Savings and Investment

Monitor survey, 33%

of respondents say that

saving for the future

is not a priority for

them right now. Your

investment can be used

for other purposes, such

as education or an

emergency fund.

MYTH 4: Big risk =

big rewards

TRUTH: This is not true.

A unit trust spreads your

money, and therefore

your risk, across

many investments,

depending on the unit

trust you choose. Big

rewards should come

from investing over the

long-term and letting

compound interest work

for you.

MYTH 5: As there are

so many options, it’s

difficult to make an

informed choice

TRUTH: With more than

a thousand unit trusts

available to us, people

are often overwhelmed.

Old Mutual Unit Trusts

identified five core

investor needs to create

the Investment Series

• each varying in risk
  exposure and expected
  returns. This helps you
  to select the fund
  most suited to your
  saving goals. 

According to the 2019
Old Mutual Savings &
Investment Monitor, 25%
more households are
suffering major stress
due to money issues
compared to last year.
But fear not – savings
and investments are
still within your reach
despite the myths
you’ve heard.

MY T H 1: You need a lot
of money to start saving
TRUTH: You can start
investing in a unit trust
with as little as R500
per month. You can then
gradually increase your
contributions once you’re
in a position to do so.

MYTH 2: Your money is
‘fixed’ once you put it
into a unit trust
TRUTH: Unit trusts are
liquid investments,
which means that you
have access to your
money when you need
it (market-dependent, of
course). You can sell your
unit trust and you’ll have
your money within days.

MONEY

TALK

TWO MINUTES

WITH AN EXPERT

Why is financial

freedom so important?

It gives you flexibility

and allows you to

pursue your passions.

The most important

financial lesson I’ve

learnt is...

As you craft life goals,

have financial goals

too. Once you’ve made

your investment, don’t

be tempted to

dip into it.

How do you set a goal

and keep working

towards it?

Your values should

be at the core of your

goals. If you want to get

rid of debt, curb your

spending and use your

spare cash to invest.

Pay off big debts, then

focus on holidays and

financial freedom.

Life advice that I’d give

my younger self:

Don’t take everything

so seriously and go on

your first overseas

trip earlier!

Managing Director

of Old Mutual

Unit Trusts

Find out more about

the Old Mutual

Investment Series at

Oldmutualinvest.com

or connecton

socialmedia:

@OldMutualSA

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