The Auto Share Invest (ASI) and Tax Free Invest functionality has moved to the new Online Banking Site. Below is everything ASI and Tax Free Investment account holders need to know about the new platform.
What is AutoShare Invest?
Auto Share Invest (ASI) is a low–cost online investing platform that gives you the opportunity to buy and/or sell around 200 JSE listed Shares and ETFs on an ad-hoc and/or recurring basis.
The new ASI platform allows you to:
How recurring orders work
Recurring Scheduled Purchase using any available funds
How buy/sell today orders work
Once off purchases:
Get the most out of your tax-free investing:
A tax-free investment account** is an invaluable addition to any investor's portfolio. Through it, you're able to take advantage of great tax breaks and use it for your own benefit and to give your loved one a gift that keeps on giving.
The benefits of a Tax Free Investment Account are:
Key features of the Tax Free Investment Account are:
Selling securities in you TFIA (please note that should you elect funds to go into your bank account 'Withdraw money into my nomindated account', this will be treated as a withdrawal from your TFIA)
Reinvestment and dividends
All cash (accumulated from distributions, interest, left over from purchases or added to the account by UCount) held in your investment account is placed with the JSE Trustees (Pty) Ltd. and earns interest at the JSET rate, less fees. In order to enable you to harness the power of compound growth we have built a feature to allow your scheduled purchase orders to be automatically topped up with any available cash. If you have multiple orders for the same day the available cash is split in proportion with the value of the orders. This is the easiest way to automatically reinvest your investment income.
As an example, if you own 100 shares of a company and it pays a dividend of R2.50 per share, after the deduction of 20% Dividend Withholding Tax (DWT not applicable in tax free accounts), you will receive a net dividend of 100 * R2 = R200.
Additionally, let’s say that you have R38 left over in your account from a past purchase, where you fell short of the required amount needed to buy one more additional share.
Thirdly you have redeemed R250 in loyalty points from UCount into your account.
These amounts all attract interest for the period that they are in the account, in this case let’s say that is R5.50
These amounts are all added together:
R200 (nett dividend)
R38 (remaining from previous month)
R250 (UCount points redeemed)
If you have elected to top up your next scheduled purchase order of R750 with available funds, the actual order will be for R750 + R493.50 = R1243.50
For more information on how to use UCOunt points for Tax-free investing, please check out the following post: Earn UCount Points with Standard Bank
The Fee Structure
When you invest through ASI you will benefit from our reduced brokerage rate of just 0.25% (excluding statutory charges).
The tables below gives you an indication of the costs associated purchasing securities. There are three different cost scenarios, namely purchasing shares (ASI), purchasing ETFs (ASI) and purchasing ETFs (Tax Free)
Brokerage is charged at 0.25% of the value invested, with no minimums
Statutory fees comprise:
The minimum is R10.19 for trades with a value up to R176,000The maximum is R73.49 for trades with a value over R1,270,000
Example costs for Share Purchases in ASI
Example costs for ETF Purchases in ASI
Example costs for ETF Purchases in TFIA
Example costs for sales of both Shares and ETFs in ASI
ASI Accounts have no monthly fees, but do attract a R25 (VAT inclusive) fee for inactivity. If there are no investments in your account for 60 days then the inactivity fee will apply
Tax Free Investment Accounts attract a monthly fee of R10 (VAT inclusive)