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Investment in index tracker

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Frequent Contributor
I want to make a monthly contribution of a R1000 to an index tracker like SATRIX. If I use OST the costs will exceed 8% of my investment every month. If I go direct to SATRIX you are looking at brokerage, platform costs, debit order costs etc. and one is lucky toy get away at under 2% of investment. Is there any other way to invest in a product like SATRIX that will decrease fees?
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9 REPLIES 9
Valued Contributor
direct shouldn't cost so much, 350c + 0.1% on buy and 0.8% annual fee ?? less than 1%
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Super Contributor
instead of R1000 a month,buy 12 months lump sum on OST.....that will be about 250 shares for about R11700. Cost will be R80 which works out to about 0.7%. Small amounts(monthly) thru SATRIX direct, large amounts(lump sums) thru OST.
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Super Contributor
Or look to open up an Auto Share Invest account with Standard - free if you have an cheque account with them - costs are low, but you have limited buy and sell dates.
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Valued Contributor
ASI cost is R20 +1% and R25 every 2 months if no activity .. purchases 25th every month sales every Friday ..
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Frequent Contributor
Thanks everybody. I spoke to someone at SATRIX and he gave me the following breakdown which I can apply on a R1000: Debit order = 0.35%,transaction cost = 0.1% and 0.6%p.a. admin cost calculated quarterly. Let's add 0.05% for STRATE and investor protection and we are looking at about 1.1%. If ASI is R20p.m. and 1% then it will be 3% on a R1000. So I guess 1.1% on SATRIX is the best I can do.
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Valued Contributor
ASI is R20 PLUS 1% on transaction (R20 PLUS 0.75% on sell side) .. R25 every two months admin if no activity on the account
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Super Contributor
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Not applicable
Try Gryphon All Share Tracker 0% initial fee and 0.2% annual fee minimum debit order R200 per month http://www.gryphonam.co.za/gryphon-all-share-tracker/?portfolio=the-gryphon-all-share-tracker-fund
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Not applicable
technically not an ETF, but certainly looks to be one of the cheapest index tracking funds out there. TER of 0.31% is pretty good.
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