FNB Growth Fund can help domestic workers build savings for their retirement
The South African domestic workers face a bleak retirement because they lack long-term investment options to save for retirement. Minimum investment amounts are often barriers of entry to the superior returns offered by the stock exchange. First National Bank’s R40 per month minimum investment option into its Growth Fund offers these investors an affordable entry into the stock market.
“Domestic workers are among the most financially vulnerable employees in South Africa because they reach their retirement age without any form of savings. All responsible employers should assist their staff provide for their retirements, R40 monthly now is a small sacrifice to alleviate some of the hardship faced by retirees who only have the states old age pension for support.” says Robert Keip, Head of Investments at FNB.
Research shows that in South Africa, 31% of people who reach retirement age have to continue working, 47% are dependent on their family, 16% depend on the government pension fund and only 6% will be financially independent.
The FNB Growth Fund is simple and affordable, and seeks to address the access barriers.
For a minimum monthly contribution of R40 per month or R500 lump sum domestic workers can invest on this product.
“Often those who do not save always complain about the high minimum amounts, but the FNB Growth Fund has been designed such that those who have R40 to spare every month can save on it.
The FNB Growth Fund is suited to anyone looking for growth with a higher level of risk associated with the stock market. The fund invests in listed securities and is managed by RMB Asset Management.
With share prices at their lowest levels in many years, the stock market is offering great buying opportunities, especially for long-term investors, to build a strong wealth portfolio.
Investors who put their money in the FNB Growth Fund must adopt a long-term (three to five year) view if they are to make any real gains, Keip concludes.
