Fedgroup Secured Investment (Participation Bond)
1. 7.60% return per annum over 5 years (Rates change periodically, in line with Reserve Bank Repo Rate)
2. Capital Security 3. No initial fees Unsurprisingly, this low risk, high yield fixed deposit investment is popular option with individuals of all ages, as well as pension funds, fund managers, trusts, charities and schools. Apply for a fixed investment today if you want to secure an additional income stream for yourself on a monthly basis, or reinvest your interest. The perfect solution for retirement income.
What are the benefits of investing in Participation Bond?
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Transparent fees and regular reporting |
All fees are fully disclosed and we will keep you regularly informed on all aspects of your investment. You will receive a quarterly statement.
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Transfer of wealth |
You may nominate a beneficiary on your Participation bond. In the event of your death, the money in your Participation bond account is paid out to your beneficiary, and you do not pay executor’s fees.
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Interest taxable |
Interest is taxable in the hands of the investor, subject to the income tax regulations which may apply from time to time.- Currently R23 800 for under 65’s and R34 500 for over 65’s. An IT3b is sent to clients on an annual basis. Whether interest is being reinvested or taken out, the same applies, because income tax is payable on the earlier of receipt or accrual. The interest accrues to the investor prior to it being reinvested, which therefore makes it taxable.
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What are the minimum investments?
The minimum once-off lump sum investment is R5,000.
Capital Withdrawal & Redemption
In accordance with the requirements of a Collective Investment Scheme, the investment period is fixed for five years, whereafter the investor may choose to reinvest for a further five year period or withdraw the funds.
The investor may choose to receive interest payments on the capital amount, or may choose to reinvest the interest. All or part of the investment may be repurchased by the Manager within the initial five year period, provided that the repurchases will only be effected three calendar months after receipt by the Manager of written notice and all necessary documentation as determined by the Manager. Depending on the investor’s chosen option, the Manager will charge a reasonable cancellation fee.
The tax free savings product is not subject to this investment period and may be withdrawn with 5 days notice.
The investor may choose to receive interest payments on the capital amount, or may choose to reinvest the interest. All or part of the investment may be repurchased by the Manager within the initial five year period, provided that the repurchases will only be effected three calendar months after receipt by the Manager of written notice and all necessary documentation as determined by the Manager. Depending on the investor’s chosen option, the Manager will charge a reasonable cancellation fee.
The tax free savings product is not subject to this investment period and may be withdrawn with 5 days notice.
What are our fees?
Our initial advice fee is 1.0% plus VAT, subject to a maximum of R20,000.
Our annual advice fee is 0.25% plus VAT, deducted monthly from your participation bond account.
Our annual advice fee is 0.25% plus VAT, deducted monthly from your participation bond account.