Warren Buffet famously advised, “Rule No. 1 of investing: Never lose money. Rule No. 2: Never forget rule No. 1”. While many investors bias their decisions towards higher returns and a search for alpha, diversification and the inclusion of lower risk options remain an important part of the mix.

With the world in a constant state of flux and uncertainty, investors are increasingly needing to review their investment portfolios to ensure a balanced asset allocation and risk profile based on their individual needs. Even seasoned investors find themselves scratching their heads when it comes to making prudent investment decisions, especially when facing the prospect of financial loss.

When it comes to future-proofing portfolios, structuring a robust, diversified portfolio that can withstand volatile market fluctuations is key. A well-diversified portfolio with a suitable asset allocation strategy can help investors mitigate potential market losses and smooth out the bumps in the road.

However, with traditional fixed investments providing subpar returns, which are often further diminished by layers of unnecessary fees, investors need to dig deep to find products that complement their portfolio and suit both their long-term and short-term investment needs.

With so much proven volatility in the markets, Fedgroup Secured Investment provides investors with a measure of certainty by offering full capital security and inflation-beating returns. Since inception of this product over three decades ago, no investor has ever lost capital or the interest due to them. Equity investors riding events such as the 2008 crash or the COVID-era volatility would have experienced some peace of mind with the Fedgroup Secured Investment as a portion of their broader portfolio.

Strictly regulated and governed by the Collective Investment Schemes Control Act, Fedgroup Secured Investment is not subject to short-term market fluctuations. Rather, it offers a fixed interest rate over a five-year term, along with flexibility that allows investors to structure the offering in a way that suits their unique needs.

Investors have a choice between having the monthly interest paid out, reinvested for growth, or a combination of both. Because of this, Secured Investment has found favour with a large array of investors, as evidenced by the fund’s recent high growth to over R5.5 billion AUM in 2022.

Of all the unique aspects of this product, of note is the lack of any fees charged to investors. No ifs, no buts, no “qualifying products”, and no hidden clauses. Thanks to simplified financial structures and Fedgroup’s commitment to value creation, investors enjoy a market-leading rate on maturity of 11.7% p.a.* without unnecessary fees eroding returns.

Few other providers offer a better rate at comparable low risk.

Gone are the days of having to choose between capital preservation and competitive returns!

And because it’s available via the Fedgroup App or through a financial advisor, investing a lump sum of R5 000 or more for a five-year period has never been easier. No red tape, no unnecessary jargon, no problems.

Given all these advantages, it becomes apparent why an increasing number of investors regard the Fedgroup Secured Investment as the foundation of a balanced investment portfolio.
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*Rate on maturity if the interest is reinvested over a five-year period at a fixed nominal rate of 9.25% p.a.
Rates represented at the time of publication are subject to change.