Viewing The Hidden Dimensions

- Sohini Castille

The investment landscape in South Africa is vast, with a multitude of choices for investors. Often, the facts presented to potential investors offer only a partial view of an investment product’s dimensions for them to consider.

We’re all familiar with the barrage of highly emotive marketing campaigns associated with investment firms and their underlying products. Before being swooped away by glossy brochures and enticing value propositions, it is worth taking the time to appreciate the full picture of the investment product on offer and its suitability for you as potential investor.

There has been a sharp rise in financial-related criminality in recent times with investment scams becoming a fast-growing (and profitable) ‘occupation’ for the wickedly inclined. This raises the stakes substantially for unsuspecting investors who do not necessarily have the correct tools or investment acumen to identify those investment products that are backed by ill intentions.

Unethical behaviour in this area has particularly far-reaching consequences for investors looking to grow and protect their wealth.

When it comes to investing for retirement, these savings are potentially the largest pool of money that investors will accrue throughout their lifetime. The decisions an individual makes during their working lifetime could have a dramatic impact on their financial outcomes at retirement. It could very well be the difference between retiring comfortably and having to make unpalatable lifestyle adjustments in retirement. The information that informs these investment decisions is therefore of critical importance.

Another challenge facing investors is the poor levels of transparency – at least historically – in SA's financial services industry. To some extent this is still the case today.