Satrix expands its portfolio of index tracking cautious investors

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Satrix has launched a low equity balanced index fund targeting more cautious investors.

The company is also among the leading providers of passive investment products in South Africa.

“Satrix offers investors easy, cost effective access to the markets through a wide range of passively managed investment products,” noted the organisation.

“The fund is a low equity multi-asset class portfolio aimed at cautious investors requiring income and capital growth in the medium to long term.”

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The fund has a minimum contribution of five hundred rand with a 10,000 rand lump sum.

Chief executive officer of Satrix, Helena Conradie says the fund is useful in providing a reasonable income among others.

“It aims to provide a reasonable level of income whilst seeking to preserve capital, in real terms with lower volatility, over a medium to long term period,” she said.

The company says it is convinced that diversified market exposure can be achieved at a relatively low cost, without necessarily compromising on investment performance.

The fund will also in tracking the performance of Satrix’s low equity balanced index.

“The Satrix Balanced Index Fund is a regulation 28-compliant fund which offers diversified exposure to all the key local and international asset classes, with a smart SA equity core,” the company said in a statement.

(WATCH VIDEOMerits of using passive funds)

“The fund tracks the proprietary or custom Satrix Balanced Index. The fund invests in a range of underlying smart equity indices.”

Satrix says there are two ways to invest in a Satrix tracker fund, either through a unit trust or an exchange-traded fund.

“Both products offer investors access to the performance of an underlying pool of assets via a single transaction. These assets, depending on the index being tracked, can include shares, bonds, cash or property.”