Unit Trusts
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Unit Trusts
Achieve your financial goals with minimal risk.
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Unit Trust benefits

Secure

Secure 

Legally protected and safe.

It’s for everyone

It’s for everyone

Suitable for any budget.

Easy to sell

Easy to sell

Quick access to funds.

What you need to know

  • What is it?

    • A Unit Trust pools money to invest in shares, bonds, money market instruments and other investments
    •  The pool is divided into equal parts called units, each with a price or net asset value (NAV)
    •  As the fund performs well, the value of your units increase.
       

    What do you get?

    • Unit Trusts offer a low-cost, easy way to invest in the stock market
    • When managed by experts, they can provide good returns
    • All investments carry some risk, so understanding the cost of your chosen fund is important
    • For advice, it's best to speak to a broker. 

     

  • Understanding the Tiers

    Tier 1: Location

    • Funds are grouped by where they are located - South Africa, worldwide, global or regional. For example, South African funds must have at least 70% of their assets invested in South Africa at all times.
       

    Tier 2: Type

    • This tier describes the investment types in the fund. The rules are very specific to ensure that you know what you’re getting into:
    • Equity portfolios: Hold a minimum of 80% of the portfolios in equities
    • Multi-asset portfolios: Invest in a mix of assets such as equity, bonds, property and cash. Based on market conditions, it can be conservative or aggressive
    • Interest bearing portfolios: Money market portfolios - target interest income, while aiming to preserve capital and provide quick access to funds.
    • Real estate portfolios: Invest in listed property shares and real estate.
       

    Tier 3: Area of focus

    • Tier 3 specifies the investment focus within each type. For example, equity funds may focus on general equity, large cap, resources or financials.

  • Fees and charges

    Initial lump sum investment: 

    • R2 000

    Monthly investment: 

    • R200

    Initial administration fees (lump sum) and charges: 

    • Absa: 0.00%
    • Adviser: 0 – 3.45% (@ 15% VAT)

    Annual administration fees:

    • Adviser: 0 – 1.15%

  • Tax implications

    • You're taxed on interest earned from your investments
    • Capital gains tax is payable on profits made when you sell your units for a higher price than you bought them for
    • How much you pay depends on your income tax bracket, age and if any rebates apply to you.

  • How to apply

    To start investing, all you need to do is:


    1. Download and complete the forms below
    2. Email the forms to aimscc@absa.africa
    3. We'll get back to you as soon as possible
       

    Forms:

    One Investment form for Individuals

    One Investment form for Legal Entities
     

    Need something else?

    We have investments to suit your budget and goals. Visit the resources page for more.

Get a unit trust that suits your needs

Need more help?

Let one of our consultants help you get the best investments for your needs.

Contact us:

Call us on : 0860 000 005

Email us at : aimscc@absa.africa