Childrens education fund?

[Chutney]

Hi Guys, the wife and and are thinking of a education fund for the future kiddies......any suggestions? just want a slow monthly deduction and obviously a growth of this fund....maybe a ETF or satrix bundle...looking for long term steady growth as it will be a saving vehicle over the long term. i heard the RSA government actually runs a specific education fund and will pay nearly 60% interest on the accumulated funds when the fund is paid out! anybody heard of this? i heard it on a finance talk show but cant find it on the internet and cant remember the name! thanks. C.

[Rams]

FUNDISA. http://www.asisa.org.za/fundisa/index.php/how-does-fundisa-work.html

[SimonPB]

ya, geat fund .. not going to knock the lights out or be enough coz of limits .. but they give you free money ..

[gareth01]

Why not a high yielding property unit trust (SA Corp) or property loan stock (Redefine/Growthpoint). It wont shoot the lights out in terms of share price racing in the short term (but longer term it will perform), plus you are getting a high dividend yield (8% and above). Also it is not as volatile as other shares in other industries....either this (as and when you have the cash flow) or satrix 40 etc. I dont like unit trusts for kids - just trailing brokerage costs.

[#5]

My sentiments exactly. Or some of the more solid blue chips, pick 3 or 4 with high div yields and buy periodically on the dips. If you have less than R10k per installment, then use Standard Bank's Auto Share Invest scheme - a very low cost solution for buying and holding

[MAGICIAN]

Just be careful about the tax implications of the property stocks - Redefine, Growthpoint, etc. They pay interest, not dividends, thus all interest is taxable.

[DawieB]

Thanks for the post on the fund. I agree with the sentiments on Unit trusts. 2nd worst investment type out there, just behind endowments (Liberty, OM, Sanlam and the like) but the 25% bonus of the Edu Fund makes a huge difference, and the fact that you can start it off with as low as R40 a month! Signing my 2 kids up today. Simply drink 2 less beers a month and it will be like nothing happend :) PS.. No investment available today can beat a min investment as low as R40 or R100 a month... Satrix's viable minimum is at least R500...