National Savings Month is important to help drive more awareness around saving and investing among South Africans. PHOTO: Pexels.com
July is National Savings Month in South Africa, a time when we put the national spotlight on the need for South Africans to save and invest more. We have one of the lowest savings rates in the world which means many of us don’t have a financial buffer during periods of recession, high inflation or interest rate hikes. Investing is one of the best ways to make your money work harder for you – and knowing your investment personality is a crucial part of the journey to maximising your returns.
Duma Mxenge, Business Development Manager at Satrix, says, “At Satrix, our commitment lies in assisting South Africans to enhance their knowledge about investment and National Savings Month is important to help drive more awareness around saving and investing among South Africans.”
He said, "There are so many factors that impact our investment ‘personality’. For instance, upbringing can be a big factor. When I grew up, the environment was very restrictive due to the government at the time. My parents’ personalities meant that this made them extremely cautious with their finances and they had a highly conservative mindset. Children brought up with these money values tend to adopt a similar conservatism or ‘rebel’ with a more maverick mindset.”
He said there is no good or bad personality when it comes to investing. It’s just about working with your natural traits to set in place a strategy that matches who you are.
Now to the practical.
Take the quiz to uncover your investment personality and gain insights into how you can optimise your investment strategy.
Now, let's evaluate your answers and discover your investment personality:
You prioritise capital preservation and prefer safer investment options. Low-risk opportunities and long-term stability are more likely to be your goals, not chasing high returns. Consult with a financial adviser who can help build a diversified portfolio that aligns with your risk aversion.
You are analytical and meticulous in your approach to investing. You conduct thorough research, rely on facts, and make well-informed decisions. You are likely to favour a balanced portfolio with a mix of low to moderate risk investments, and you regularly review your strategy to stay aligned with your long-term goals.
You enjoy taking risks and following trends. You should be wary of making impulsive decisions and rather focus on maintaining a diversified portfolio. Consider seeking guidance from a financial adviser to help navigate the market and manage risk effectively.
You have confidence in your own research and judgement. You leverage your independence and research skills to build a portfolio that reflects your investment goals. Stay well-informed about market trends and be open to adjusting your strategy based on changing circumstances.
By understanding your investment personality and aligning your strategy accordingly, you can contribute to building a stronger savings culture and secure your financial future.
Regardless of your investment personality type, diversification is key. “Exchange-traded funds are an investment vehicle which offer affordability, simplicity, flexibility, and the ability to diversify across various asset classes, ensuring your portfolio is well-rounded.”
Mxenge says that investing is a lifelong process. “Stay informed, continue learning, and adapt your strategy as market conditions evolve. With the right knowledge and self-awareness, you can make significant strides towards achieving your financial goals.”
PERSONAL FINANCE