Benefits of wrap investing

GLOBAL ASSETS: CUT EXPOSURE TO SA RISKS

- Ettienne Bezuidenhout

In an increasingly interconnected world, South African investors have access to a broader range of investment opportunities than ever before. One key strategy for maximising these opportunities is investing in global assets through a wrapper. An investment wrapper is a financial product or account that "wraps" around investments to provide certain tax advantages or other benefits.

It typically allows investors to hold a variety of assets like stocks, bonds, and funds within a single structure while benefitting from specific regulations or protections. An example of such would be an endowment.

This approach diversifies your investment portfolio and also provides several financial and regulatory advantages that can safeguard and enhance your wealth.

1. Diversification and risk mitigation