free investment advice logo

Here's the deal: You may read the information on the site for free and ask questions. As and when I have the time I'll answer the questions on the website and add new articles. Please do not consider it to be advice - the only free investment advice is to apply your own mind. If you are worried about your investments, I am willing to have a look and improve it. If you are destitute I will try to help free of charge (but you join at the back of the queue). If you are not destitute then email me and we can agree a lower fee (percentage terms, repeating monthly, is fine) than you are currently charged. I have limited time available, and will prioritise the work accordingly, so please be patient. Email me at invest@freeinvestmentadvice.org detailing the situation for which you'd like advice. Rob Baker

Standard Bank SharePlus

leave a comment

21 June 2012. After doing a writeup on the Investec S&P500 Growth ESP, a reader asked me to share my thoughts on the Standard Bank SharePlus product. OK, I wont be investing in this either (note that some of this writeup is based on a conversation with a Standard Bank consultant, who may not have had an intimate knowledge of the product):

That's not to say it wont outperform, even products that face structural headwinds can outperform, and of course sometimes it's me getting it wrong.

About SharePlus

Standard Bank's website describes SharePlus as being a "24 month investment account that provides returns linked to the growth in the ALSI40, the top 40 shares on the JSE by market capitalisation. The SharePlus guarantees your investment and gives you returns of up to 25%*" (I'm not sure what the asterisk next to the 25% is for).

No early redemption is allowed, you have to ride out the 24 months.

Your investment amount is the amount deposited plus a call rate of interest income from the date of deposit until the investment period begins. Rates on call deposits are quite low, so be certain to check what rate you're earning, unless you're earning an equally low rate of return, it may be in your interests to delay depositing your investment until the shortest possible time before the investment period begins. There's only one closing at the moment, at the 30th June 2012 (investment starts 1 July) - that's the last day you can invest.

At the end of the 2 years you are paid out the minimum of the increase in the ALSI40 and 25%.

Selection

The "Entry Level" is the 7-day average of the ALSI40 prior to the investment date. If the ALSI40 is rising, is may be possible to still partially invest.

blog comments powered by Disqus

Due to regulations, our emails and this entire website should be considered as having been set up for entertainment purposes alone. Expect errors and omissions. Investment in shares and other financial instruments should be conducted by professional investment experts only. Any use of the information on my websites, emails and newsletters is at your own risk, and by using it you agree that the owners of our websites, authors and associated parties wont be held liable for any losses suffered as a result of using the information. None of the information should be construed as being advice. Our newsletters, articles, discussions and website are not an offering for any investment. It represents only our and others' opinions. Any views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest. Illustrations, forecasts or hypothetical data are not guaranteed and are provided for illustrative purposes only. There are risks involved in buying or selling a financial product. Past performance is not indicative of future performance. Any investment values given are not guaranteed. Investment returns can be volatile. When investing there is always the risk of losing all or a substantial amount of your investment, as well as the risk of illiquidity. There may be advertisements on some pages on this website, and we may earn income from these advertisements. We may earn commission on products invested in or annuities purchased. We cannot attest to the accuracy of the material presented here, and opinions expressed may be changed without prior notice. In any event our liability will be limited to R1, and any court cases must take place in Cape Town. Free Investment Advice is the trading name of South Africa Travel Online CC, a licensed Financial Service Provider (FSP number 43555). You may contact us at invest@freeinvestmentadvice.org