The coronavirus pandemic spooked many investors – both locally and globally – as the erratic swings in world equity indices, and even South Africa’s bond market can attest. Local fears were enhanced by SA’s sluggish economic performance and rightly prompted investors to question whether or not they should shift their money offshore.
In this follow-up to my previous column on offshore investment (4 June issue), I continue to look at reasons why an investor would opt to move their investments out of the country, and the important considerations that need to be kept in mind before doing so.
Foreign against rand-denominated funds
You can invest offshore either by buying and using foreign currency or by using a rand.
If you opt for foreign currency, you will be limited to your annual offshore investment allowance (which includes monetary gifts, travel, maintenance, study, and donations to missionaries), and minimum investments may be of considerable size. Your money, however, will be truly offshore, enabling you to invest in whatever you like in any country you want. Your dividends are also paid in the currency of your choice, which you can leave offshore for as long as you choose.
This story is from the 25 June 2020 edition of Finweek English.
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This story is from the 25 June 2020 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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