Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

Investing in Shares

Reply
Not applicable
If you want to invest a fixed amount per month on shares,say(R2500-00)per month what is the best way to do that? Do you buy the same stock every month or do you buy different stocks every month. Or is it not worth investing so little in stock? Thanks
0 Kudos
21 REPLIES 21
CHATTYCHAT
Super Contributor
IMO it's not cost effective on this platform. Rather opt for direct investment with exchange traded fund SATRIX (any of the 7 available to choose from) or similar. SATRIX seems the least expensive, but you have to deal with them 'direct'.
0 Kudos
warhippo
Super Contributor
Seriously consider one of the Satrix's available here on this site.
0 Kudos
MarkD
Contributor
i tend to invest a bit more than that on an adhoc basis - every other month. I have a portfolio that currently consists of 9 shares, and when I take into account the costs associated with buying and selling etc. and compare that to how Satrix has performed, I'm doing a fair bit better, so far (I had only initially wanted to do better than my MarketLink bank account).With the gains I need to make, I typically invest for the longer term and am finding that I'm very particular about which shares I invest in (PE and Dividend details are important). This has come after getting THRASHED when i first started 'investing' and made some pretty poor calls. Hopefully, I have also learnt when to say goodbye to a poor performer! If you can afford to invest a bit more than your current amount - say R4k at a time - my opinion is that investing can be worth it. Im also of the opinion that you would need to aim to do better than something like Satrix40 by a fair margin, otherwise you may as well just invest in that instead. Im a novice though and these are only my thoughts!
0 Kudos
SimonPB
Valued Contributor
you could use Auto Share Invest, part of SB internet banking .. cost is 1% + R20 ..
0 Kudos
Not applicable
this feature would be great for long-term share investors. ETFs are better through a specialist platform. Surely OST can manage this, as they will be bulking orders on ex-date to get a better fill? Auto share invest sound to be good for frequent investors. I am suggesting a tool for people who would like to re-invest over the long-term without fiddling with your portflio every month. Typically these investors would be already long and looking to re-invest.
0 Kudos
Not applicable
0 Kudos
SimonPB
Valued Contributor
just ignore you .. or delete you as well ??
0 Kudos
Not applicable
Autoshare invest is a really good option. Simon, I seem to remember that Autoshare Invest accepted lump sum deposits as well?
0 Kudos
SimonPB
Valued Contributor
any amount R500 or higher per transaction ..
0 Kudos
Not applicable
I am not sure that you guys are telling the whole truth. If this person stuck R2500 every month into these property funds like Redefine, Growthpoint and so on, he/she would receive a lot more "dividends" and that would create a type of second income. I analysed a bunch of shares that have a DY of 4% or more and pay "divs" for the past 5 years and then I sorted them by LDT. You can create your self an additional income every month. You don't have to take it. You can buy more shares. Just sticking it into a Satrix fund is not necessarily the way to go. It all depends on what your goal is and your goal should be cashflow and cashflow lead to FUN THINGS! He that controls the cash, have the fun!
0 Kudos
Invinsible
Contributor
Not sure about this auto share invest, but to my understanding you have to have a standard bank acc and register for internet banking so does thi mean you have to take into account the fees for both account and internet am i right?
0 Kudos
SimonPB
Valued Contributor
sure .. that said it is aimed at existing account holders ..
0 Kudos
kwagga
Super Contributor
Dump R2500p/m in this OST money market account - 4.8% interest and buy shares every 4 months when it reaches R10 000. Buying in chucks of less than 10k makes no sense when it comes to transaction fees.
0 Kudos
Not applicable
I keep reading about this also, but I have seen shares climb 20% in 20 days. Okay so you wait till you can place a fairly big order to make it economical, but you might just miss the run, heng you might just miss the LDT date and lose out on some serious divs.
0 Kudos
Not applicable
and you might also catch the bottom of a correction too! that is the point behind monthly contributions, what you lose on the swings you make on the roundabouts. Also, bear in mind that some people would consider a rally of 20% a prerequisite to investing (i.e. getting into the fastest moving stocks)
0 Kudos
Not applicable
Thanks all for your suggestions, much appreciated.
0 Kudos
CHATTYCHAT
Super Contributor
So, Jakes101 - tell us what is your decision after absorbing all opinions and info?
0 Kudos
HateGauteng
Super Contributor
seeds, fertilizer, ammo, canned food, fuel.
0 Kudos
CHATTYCHAT
Super Contributor
Nah - toilet paper, water purification, solar heating
0 Kudos