How To Invest In The JSE Stock Market
The first step into investing in the JSE stock market is to learn about the stock exchange. As an investor you need to understand how the JSE operates and the different investment options that are available to you. Once you have an understanding of the JSE stock market you approach a stock broker who will discuss your investment goals with you.
People can invest by directly buying shares from listed companies through a stock broker. You can also invest through a fund manager who make investment decisions on your behalf. Fund managers are experienced and knowledgeable therefore they will make the best and most profitable decisions on your behalf. Fund managers decide on investment opportunities that they think will pay out in the end. Examples of fund managers include Allan Gray, Investec, Coronation, Stanlib and Old Mutual.
If you start with a stock broker, you need to make your first investment of R5000 due to the minimum fees charged by the broker. One can also invest in a tax free savings account which allows investors to invest in Exchange traded Funds. Tax free savings Account allows investors to invest up to R33 000 per year and R500 000 life time contribution.