Guaranteed Investments
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Since the start of the 2008 global financial crisis investors have become increasingly uneasy about taking risk. The average investor is wary of where they put their money, and rightly so, because it can take years for your investment to recover from negative performance.
In volatile economic times, it is refreshing to know that you can still invest with confidence, and that your investment options are varied to suit your needs. Our Guaranteed Plans give you a guaranteed return on your lump sum contribution at the end of five years. These plans allow you the guaranteed growth and security of your investment. |
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The Guaranteed Growth Plan |
Guaranteed Income Plan |
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When you choose the Guaranteed Growth Plan, your lump sum inves tment will grow at a guaranteed rate for five years.
At the start of your investment, you know exactly how much your capital will grow by and how much you will get out of your investment, which gives you investment certainty. Market movements during the five years will not affect your investment because Discovery Invest guarantees the growth you will get, making this plan a low-risk investment. |
The Guaranteed Income Plan gives you the flexibility to grow a p ortion of your lump sum investment at a guaranteed rate
(growth portion) and receive a regular income from the other po rtion of your investment (income portion) at the same time. At the start of your investment, you decide how much of your ca pital should grow at a guaranteed rate, and how much will be used to give you an income. The growth rate on your growth portion and income level from yo ur income portion are both guaranteed by Discovery at the start of the five-year term and are completely unaffected by market movements, making it a low-risk investment. You can choose to have the income from your income portion paid to you monthly, quarterly or yearly for the five-year term. You can choose to receive a level income amount for the five years, or start with a lower income amount which increases every year. |
What are the benefits of investing in a GUARANTEED INVESTMENTS
Tax efficiency |
The money that you receive at the end of the five-year investment term from the Guaranteed Growth Plan and the growth portion of the Guaranteed Income Plan is paid out tax free.
The income that you receive from the voluntary annuity on the Guaranteed Income Plan is subject to income tax, which you are responsible for paying to SARS (the South African Revenue Service). |
Discipline, flexibility and freedom |
Since the Guaranteed Return Plans and the growth portions of the Guaranteed Income Plans are structured as five-year investment plans, it is recommended that you stay invested for the full investment term. If you need to withdraw your money before the end of the five-year investment term, you will receive your investment after it has been adjusted in line with the
market values at the time. At the end of the five-year investment term, you can immediately withdraw your investment capital or you can reinvest it in another plan, or another investment from the Product Provider Withdrawals from the income portion of the Guaranteed Income Plan are not permitted within the five-year term. |
Transparent fees and regular reporting |
All fees are fully disclosed and we will keep you regularly informed on all aspects of your investment. You may also access your investment information online.
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Transfer of wealth |
Guaranteed Growth Plan – if you are younger than 70, an amount equal to your investment’s guaranteed maturity value will be paid to your beneficiaries. If you are older than 70, an amount equal to your lump-sum investment grown at your guaranteed rate to your date of death will be paid to your beneficiaries.
Guaranteed Income Plan – if you are younger than 70, an amount equal to your growth portion’s guaranteed maturity value will be paid to your beneficiaries. If you are older than 70, an amount equal to your growth portion grown at your guaranteed rate to your date of death will be paid to your beneficiaries. The income from your plan will be paid to your beneficiaries until the end of the five-year investment term. * Please note that certain restrictions may apply to the value payable on death. Please consult the latest Invest Fact File for details. |
Who should consider investing in a Guaranteed Investments ?
You may wish to consider investing if:
- Are looking for a safe haven in which to invest your money,
- Would like to have a guaranteed return after 5 years,
- Require a guaranteed amount at the end of 5 years that is not subject to market volatility.
What are the minimum investments?
You need to invest a minimum lump sum of R60 000 to choose one of our Guaranteed Return Plans.
What are our fees?
Our initial advice fee is 3.00% plus VAT. The interest rates quoted have already taken account of our fees and are net of all costs.
Our Preferred provider
Discovery |
1. Reputable financial services group; 2. Financially sound; 3. Easily creates detailed investment proposal; 4. A wide range of internal and external funds; 5. Clever use of technology to provide excellent client service; 6. Costs are competitive; 7. LifeBooster boosts investment value by 5% to 15% depending on Vitality status if life assured dies before maturity; 8. Fee Payback benefit enhances investment value; 9. Guaranteed Return Plan linked to a Life Plan receives a bonus through Life Plan Optimiser.
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