By Tokiso TKay Nthebe
Finance expects often encourage us to have a financial plan and start investing early. Making the decision to start investing, however, can be overwhelming because of the myriad of things to consider for example ‘where do you start?’, ‘how do you choose the right fund?’ ‘What are the risks?’ ‘Which asset manager is the best?’
For new investors in Lesotho, the investment landscape comprises of three licensed and registered asset management companies by the Central Bank of Lesotho (CBL). An asset manager is responsible for the management of assets (investments) of investors, provides financial advice, manages risk and ensures good returns to meet the investors’ expectations. One such asset manager is STANLIB Lesotho.
About STANLIB Lesotho?
STANLIB Lesotho (Pty) Ltd established in August 2001, is a licensed and registered financial services provider with CBL, regulated under the Collective Investment Scheme Regulations of 2018. As a leading asset management company in Lesotho, STANLIB Lesotho provides short-term cash management, medium-to-long term investments solutions, popularly known as ‘unit trusts’ to meet individual and corporate investors’ needs.
What are unit trust?
Unit trusts, also called collect investment schemes (CIS) are a convenient and low-cost vehicle that pools different investors’ monies, helping them access the investment market in exchange for good returns. Each investor will have a portion of the investment called a ‘unit’.
What unit trust to consider?
There are different types of unit trusts to consider, depending on your investment goals and size of wallet for example a money market fund, fixed income or equity fund. Investors should consider their investment goal, define the risk tolerance, how much returns they expect and determine the investment term. Investors with short-term investment goals like saving for deposit for a home over a period of twelve to twenty-four months for example, who want to preserve the capital and not take too much risk, a fund like a money market fund may be suitable. It is important to seek professional investment advice.
What are the benefits of unit trusts?
Unit trusts are low-cost vehicles, allowing investors to start investing from LSL5 000. Investors also have the flexibility to set up a debit order starting from LSL1 000 to grow and build their portfolio. Because the asset managers are regulated, investors’ funds are safe. Each fund is managed by professionals who are skilled, have relevant experience and their performance benchmarked against set industry benchmarks. To open an investment account, investors will need to provide documentation such as proof of identification, source of income and proof of residence among many.
Why STANLIB Lesotho?
STANLIB Lesotho forms part of the STANLIB South Africa which is one of Africa’s leading asset managers. STANLIB Lesotho has over two decades of experience in Lesotho, providing investment solutions to help Basotho achieve their investment goals. STANLIB Lesotho also caters to individual investors, mekhatlo, small and medium enterprises, associations, corporate institutions and retirement funds with a footprint in all ten districts through the Standard Lesotho branch network.
For more information, visit STANLIB Lesotho offices situated at the ground floor MGC Office Park in Maseru or visit https://stanlib.com/lesotho/