Don't look back, you are not going that way, Christo Lineveldt, investment specialist for personal investments at Coronation Fund Managers, warns in the manager's recent Corospondent communication. Returns for the past three to five years buck the long-term trend that rewards investment risk. On average, investing in a money market fund, bond fund, high equity multi-asset fund or a general equity fund would have earned between 7% and 8% a year over the past five years to the end of July, says Lineveldt. And worse, over three years, you would have earned a better return from a money market fund, (7.4%) with almost no risk to your capital, than you would have earned from an equity market (3%). But over the past 80 years, cash has delivered 7.5% a year vs 14.4% a year from local equities, Old Mutual's Long Term Perspectives shows. Investors should know that the returns of the past four years are not the norm: South African equities consistently produce higher returns than cash most of ...
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