INVESTMENT
Unit trusts swell after inflow surge
Collective investment schemes attracted R30.4bn during the first quarter
Money flowing into local unit trusts for the year to March 2017 reached its highest level in three years after healthy inflows in the first quarter, figures from the Association for Savings and Investment SA show. Collective investment schemes attracted R30.4bn during the first quarter, pushing net inflows for the year to March to R157.1bn, the association said. Strong investment flows would have been boosted by optimism among investors over the country’s prospects at the beginning of the year. However, investors have been more cautious after the cabinet reshuffle and downgrades of the country’s credit rating. At R45bn, a large portion of inflows went to money market funds, said association senior policy adviser Sunette Mulder. "Institutions often use money market funds to park money before investing it. This is therefore not a good indicator of the retail investor outlook," she said. "However, we know that South African investors remain far more risk-averse than their international...
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