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How much money do I need to invest in a unit trust fund?

How much money do I need to invest in a unit trust fund?

Key takeaways

  • Unit trust companies set minimum investment amounts for each fund, both for lump sums and for recurring investments, via a debit order. Minimum investment amounts can be higher or lower, but R5 000 lump sum and R500 a month is common.
  • Some exchange traded funds have no minimum investment amounts.


Unit trust companies set their own minimum investment amounts for each fund. If you commit to an ongoing investment with a monthly debit order, most unit trust funds require a debit order of at least R500, but some have minimums as low as R200 and some are as high as R1000.

Some exchange traded funds are available on platforms that allow you to own a fraction of the share and hence have no investment minimums.

If you want to invest a lump sum, first check how much your chosen fund will accept. While the most common minimum lump sum investment amount is R10 000, some require as much as R20 000 and others as little as R500.

 

INVESTMENT TIP:

If you are struggling to find the money to invest, consider how easily you would normally spend R500 a month on, say, take-away supper, a bag of goodies at a top-end retailer or buying lunch at work. A small sacrifice could start your investment with the potential to grow in line with big brands listed on financial markets like the JSE, the London Stock Exchange or the New York Stock Exchange.

 

Read more: Should you invest a lump sum or regular amounts in a unit trust fund?

 

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