03 Jul 2013

The uptake of unit trusts has been phenomenal as Batswana have realised that such are affordable means towards wealth creation.

Speaking in an interview, BIFM Unit Trusts head of retail, Ms Setshwano Ngope said local investors had found the unit trusts to be attractive. Unit trusts offered Batswana an opportunity to invest in capital markets at an affordable rate and at minimal risk through diversification.

Ms Ngope said by pooling investors’ money together, an individual investor could invest in a wide range of assets by either paying a lump sum or in debit order. Investment in unit trusts offered access to experts, investment opportunities, reduction in investment costs, simplified investments and wealth creation and flexible investment options.

Ms Ngope said they offered their clients different categories of unit trusts, the money market and balanced prudential and they invested in domestic and offshore markets.

The domestic money market offered low risk and although there was no recommended period of investment, investors were encouraged to invest for a period of three to five years. Minimum investment amount was P5 000 lump sum or P1000 monthly debit order.

This was for investors who wanted to preserve capital in Pula, wish to maintain liquidity and also want to generate high levels of income and dividends are paid out every month. The balanced prudential was available for domestic and offshore market and the minimum investment required was P1 000 or P200 debit order.

This was for investors who wanted to create long term capital growth and had an appetite for risk similar to the average pension fund investor. Ms Ngope had welcomed developments at the Botswana Stock Exchange (BSE) saying they provided further investment opportunities.

She said they had been able to invest in offshore Exchange Traded Funds (ETFs) but were now looking at those available in the local bourse. She also said they were looking forward to the introduction of Global Depository Receipts (GDR). ENDS