JSE Investment

The JSE Investment Challenge is a game that aims to teach South Africans of all ages about investing on the JSE and the larger role that such investment plays in the country’s economy.

The challenge helps those participating to learn about the fundamentals of investing and encourages them to research and strategise around trading of JSE listed instruments. Participants test their trading skills through a simulated trading programme where performance is tracked and measured.

How do I invest on the JSE?

There are three ways to invest in companies that are listed on the stock exchange.

  • 1. Invest directly by buying shares in listed companies through a stock broker.
  • 2. Invest in what is called an index tracking fund, like Satrix, which invests in the largest companies on the JSE. This is a very cost effective way to invest with smaller amounts of money
  • 3. Invest through a fund manager like Investec, Coronation, Stanlib, Old Mutual, or Allan Gray, etc. The fund managers make the investment decisions for you and invest in the shares that they believe will perform.

Based on your question, I will focus just on the direct investment through a stock broker.

Usually you need to start off with about R5 000 to be cost effective due to the minimum fees charged by a broker. You would invest this in one or two shares and then when you have another lump sum you would buy another share to add to your portfolio. However Standard Bank’s Online Share Trading has a product called Auto Share Invest (ASI) that allows you to invest directly in the market with a monthly debit order and is relatively cost effective for smaller investments.

Every month you invest R500 or more and on 25th of each month Standard Bank will buy the shares you have chosen from their range of selected shares which includes the 40 largest companies listed on the JSE.

It costs about R25, which works out to 5% on a R500 investment. This means that the share price must first increase by 5% before you are making money. If you want to become an active investor on the JSE it is advisable that you attend Online Share Trading’s educational seminar to familiarise yourself with the markets. It’s is free and you can contact them 0860 121 161 or email seminars@standardbank.co.za for details and venues.

How does JSE investment work?

Every month you invest R500 or more and on 25th of each month Standard Bank will buy the shares you have chosen from their range of selected shares which includes the 40 largest companies listed on the JSE. It costs about R25, which works out to 5% on a R500 investment.