Knowledge Corner Page: 5

SOUTH AFRICA

Monday, April 17, 2023

INVESTMENT PLATFORM

Investing via Mauritius: Key Advantages

A South African resident may choose to use an investment platform based in Mauritius for several reasons. Some of the key factors that could influence this decision include:

Tax benefits:

Mauritius has a favorable tax regime, which can provide significant tax advantages for investors. For example, Mauritius has a double taxation avoidance agreement (DTAA) with South Africa, which may result in reduced withholding tax ...

INVESTMENTS

Wednesday, April 12, 2023

TERMS

Discovering Structured Products

Today, we take a deep dive into an investment vehicle that's been making waves in the financial world: structured products. In this "An Introduction to Structured Products," we'll be demystifying the complexities surrounding these products and providing you with the tools to navigate this intricate financial landscape.

What are Structured Products, Anyway?

Breaking Down the Basics

INVESTMENTS

Thursday, March 30, 2023

TERMS

Demystifying Net Asset Value (NAV)

Net Asset Value (NAV) is a key term in the world of investing, particularly in the context of mutual funds, exchange-traded funds (ETFs), and closed-end funds. In simple terms, NAV represents the per-share value of a fund's assets, minus its liabilities. It is a crucial metric for investors to evaluate the performance and value of a fund.

To provide a comprehensive understanding of Net Asset Value, we will discuss the following:

    ...

INVESTMENTS

Thursday, March 30, 2023

TERMS

Investing-World Liquidity

Introduction

The importance of liquidity in the financial and investment worlds cannot be overstated. The term "liquidity" describes the simplicity with which a certain asset or security can be bought or sold without a major change in its price. Liquidity, in layman's terms, refers to an asset's ease with which it can be changed into cash. Unlike illiquid assets, which may take more time and effort to sell and may even sell at a discount, highly l...

LEGAL

Thursday, March 30, 2023

TERMS

A Comprehensive Guide to GDPR

EU's General Data Protection Regulation (GDPR) is a sweeping piece of legislation protecting personal information since it comes into force on May 25, 2018. With the imposition of stringent limits on the collection, processing, storage, and use of personal data, GDPR seeks to protect the personal data and privacy of EU people.

Information on an identified or identifiable natural person (a "data subject") is considered personal data under the Gen...

INVESTMENTS

Thursday, March 30, 2023

TERMS

Investment Jargon Simplified

Introduction

The Markets in Financial Instruments Directive is one of Europe's most important pieces of legislation (MiFID). In this primer, we will discuss the background of MiFID, its primary components, and the effects it will have on investors like you.

Just what is MiFID?

The Markets in Financial Instruments Directive (MiFID) is a set of laws enacted by the European Union (EU) with the intention of fostering a more open, ...

REGULATIONS

Thursday, March 30, 2023

TERMS

RDR: Retail Distribution Review

In the investment world, the term "RDR" refers to the Retail Distribution Review. This was a set of regulatory changes introduced by the United Kingdom's Financial Services Authority (FSA), now known as the Financial Conduct Authority (FCA), in 2012. The primary goal of RDR was to raise the professional standards of financial advisors and improve transparency and fairness in the way investment products and services were distributed to retail investors...

INVESTMENTS

Thursday, March 30, 2023

TERMS

Demystifying Earnings Volatility for Investors

Introduction

Earnings volatility is a crucial concept for investors to understand, as it provides insight into the stability and predictability of a company's financial performance. In this guide, we will explore the concept of earnings volatility in the simplest terms possible, providing examples, calculations, and visual aids to help you gain a better understanding of its implications in the investment world.

INVESTMENTS

Thursday, March 30, 2023

TERMS

Understanding Dividend Yield

As an investor, it's important to familiarizse yourself with basic investment terms to help you make informed decisions. One such essential term is "dividend yield." In this article, we will provide a comprehensive explanation of dividend yield, along with examples, graphs, and calculations to help you grasp this concept.

What is Dividend Yield?

Dividend yield is a financial ratio that indicates the percentage return on investment (ROI)...

INVESTMENTS

Thursday, March 30, 2023

TERMS

Understanding Total Expense Ratio (TER)

As a novice investor, it's essential to understand various investment terms to make informed decisions. One such term is the "Total Expense Ratio" (TER), which is a critical metric for evaluating the cost-efficiency of a mutual fund or an exchange-traded fund (ETF). This article aims to provide you with a comprehensive understanding of TER, including examples and calculations to illustrate its importance.

Definition:

Total Ex...

Why South African Investors Choose Mauritian Investment Platforms

Investing via Mauritius: Key Advantages

South African investors often turn to investment platforms based in Mauritius for several compelling reasons. Here’s an overview of why Mauritius is an attractive option for investors from South Africa:

1. Tax Benefits

Mauritius offers a favorable tax regime that can be highly advantageous for investors. Key benefits include:

  • Double Taxation Avoidance Agreement (DTAA): Mauritius has a DTAA with South Africa, which helps prevent the same income from being taxed twice. This agreement can reduce withholding tax on dividends, interest, and royalties, making it more tax-efficient for South African investors.
  • Low Tax Rates: Mauritius is known for its low corporate tax rate and other tax incentives, which can result in significant tax savings for investors.

2. Investment Diversification

Mauritius provides a gateway to diversify investments across different asset classes and markets. The country’s financial sector offers a range of investment options, including:

  • Global Market Access: Investment platforms in Mauritius often provide access to international markets, allowing South African investors to diversify their portfolios beyond their local market.
  • Varied Investment Products: From equities and bonds to structured products and alternative investments, Mauritius offers a broad spectrum of financial products.

3. Political and Economic Stability

Mauritius is known for its political and economic stability, which is crucial for investors seeking a secure environment for their investments. The country’s stable governance and robust financial infrastructure contribute to a favorable investment climate.

4. Financial Services Expertise

Mauritius boasts a well-developed financial services sector with a reputation for high-quality services. This includes:

  • Experienced Financial Professionals: Investment platforms in Mauritius are staffed by knowledgeable and experienced financial professionals who can offer tailored investment solutions.
  • Regulatory Framework: Mauritius has a sound regulatory framework that aligns with international standards, providing investors with confidence in the integrity and transparency of financial services.

5. Attractive Business Environment

The business environment in Mauritius is conducive to investment, with several features that appeal to South African investors:

  • Ease of Doing Business: Mauritius ranks highly in global indices for ease of doing business, making it an attractive location for investment.
  • Investor-Friendly Policies: The Mauritian government has implemented policies to attract foreign investment, including incentives for investors and streamlined regulatory processes.

6. Lifestyle and Connectivity

Mauritius also offers lifestyle benefits that can be appealing to investors:

  • Quality of Life: The island offers a high standard of living, with beautiful landscapes, a pleasant climate, and a range of leisure activities.
  • Connectivity: Mauritius is well-connected to major financial centers, providing ease of communication and travel for investors.

By choosing investment platforms in Mauritius, South African investors can leverage these advantages to enhance their investment opportunities and optimize their financial strategies.