analysis
High equity funds: What the high road can offer
High equity remains the best one-stop investment for the average saver, as it gives a large exposure to equities
At R490bn the high-equity multi-assets unit trust category is the largest unit trust sector in SA, larger even than the money market category, now at about R422bn.
High equity remains the best one-stop investment for the average saver, as it gives a large exposure to equities — up to 75%, much higher than the 40% for stable funds. But high equity is still an approved vehicle for pension fund saving under Regulation 28 of the Pension Funds Act. And over 10 years with a 7.9% return, these funds outperformed general equity funds, which gave 6.9%, something that isn’t supposed to happen according to modern portfolio theory...
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