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Instant gratification label a misnomer with millennials, as they do think about investing for the future

11 February 2022 Old Mutual Investment Group

Old Mutual Unit Trusts is launching a five-part digital investment education series, named Generation Now: Investing for the future, in a quest to demystify investing for young South Africans.

This series places millennial investors ‘in the boardroom’ with Siboniso Nxumalo, Head of MacroSolutions at Old Mutual Investment Group who is also portfolio manager for Old Mutual Equity and Old Mutual Investors Funds. In each episode, millennials talk about their investment beliefs and practices and Nxumalo, a seasoned investment professional, shares valuable insight on how investors can improve their current strategy to achieve financial freedom. The series follows in the footsteps of the Eight Steps to Financial Fitness, launched by Old Mutual Unit Trusts at this time in 2021.

Generation Y & Z are benefactors of the currently ongoing largest generational wealth transfer estimated at about USD30trillion, from baby boomers to millennials. According to Statistics South Africa, millennials account for the largest share of the working-age population at 54%, making this group an important partner in the country’s economic development and growth.

“Millennials have endured attacks sometimes being called lazy, instant gratification seekers, entitled and focused on twars, all painting an unfavourable picture, but this may be undeserved. In producing this series, Old Mutual Unit Trusts learnt that millennials are driven, confident and opinionated. Yes, living life to the fullest is important, but they are far from being concerned only with instant gratification. They constantly think about and work towards a prosperous future through savings and investments.”

This is the view of Gontse Tsatsi, Head of Retail Client Management at Old Mutual Investment Group, speaking on the day of the launch of the investment company’s latest investment education series going live on digital platforms and social media.

“We are very excited to launch this latest investment education series, which we believe, even though primarily aimed at young, bright and savvy South Africans, will equip everyone with the right information to propel their financial growth ambitions and reach the financial freedom they aspire to.”

The series premiere, which can be viewed here, focuses on assets and sees Nxumalo responding to how Buchule Sibacha, a 30-year-old Cape Town businessman, can strategically grow his assets by leveraging time, diversifying his assets and taking advantage of tax benefits offered in retirement savings.

“Time is probably the greatest asset that any young person has, as time in the market is an investor’s greatest asset, while diversification (a strategy to reduce exposure to any one particular asset or risk) reduces the impact that a poorly performing asset has on your investments,” Tsatsi highlights about the episode.

Each episode features a different South African millennial with his or her investment story. “Although an episode features only one person, we know that many others will relate to and somehow see themselves in the stories shared. That is the beauty of this series. It it is incredibly relevant and pertinent to the realities and challenges of millennials across the country,” Tsatsi says.

Other episodes in the free-to-watch series will address the difference between saving and investing (which are not, as many might think, interchangeable concepts), how to limit investment risk by diversifying (including the pros and cons of diversifying into cryptocurrency), enhance stokvel saving into investments and take responsible risks when it comes to investing. Nxumalo will also explain how considering environmental, social and governance (ESG) factors can enhance one’s investment strategy. ESG is the fastest growing asset class worldwide since 2020 in terms of inflows.

“Although investing in the Johannesburg, London or New York stock exchange is understood by so few, it is a proven way of creating wealth and achieving financial freedom. For example, most investors think investing is for the rich, however for as little as R500 a month, anyone can own a piece of their favourite multinational company such as Apple, Google, Tesla, MTN to name a few, through unit trusts. This practical education series will go a long way in helping young South Africans make smart money moves that will lead to financial freedom,” concludes Tsatsi.

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