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Since starting SV Capital I have realized that banks and investment houses cater to a fraction of the population of South Africa. They make sure the rich get richer through investing their money in different asset classes while focusing on optimum onshore and offshore allocations. Meanwhile, the average South African is only given access to savings products such as money market in order to build wealth. You are probably thinking the stock market is open to anyone and everyone so what do I mean?
Even though anyone can buy and sell shares on the Johannesburg Stock Exchange, it is not easy to understand how it works. Some of you at this point are thinking why not get a wealth manager or go through a broker? You require large minimums in order for one of these people to even sit with you.
The Stokvel industry according to Moneyweb is worth R 44 billion with 11.4 million members. We can see that money isn’t the issue, the money to invest is available because most of this money is sitting in cash. The issue is a lack of investment products that are easy to understand.
I’m sure many of you have heard about the MMM pyramid scheme, if you haven’t, google it. It’s not the first nor will it be the last scam South Africans will experience. MMM managed to raise a lot of money from the “informal” market because people are chasing returns that money market can’t give them. This is again proof that the money is there, it’s just that the available investment products have a barrier – which is understanding how they work or savings accounts aren’t delivering good returns.
When we started SV Capital we decided that we will help EVERYONE build their wealth by challenging the status quo of the investment world.
We believe in thinking differently in order to increase the number of people who invest/save. We do this by offering easy to understand, asset-backed, profitable and impactful investments products. Check them out https://svcapital.co.za/agrifund/