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Dawood Essop

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About Dawood Essop

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  1. Hello all, I've had some money (Lets call it R1M) in fixed deposits that are now freed. I want to ideally purchase Satrix MSCI World & Emerging (I have my TFSA with all the local stuff to max the tax savings) IDEALLY I want to buy the international ETF's when :- - the Dollar/Rand is not at its current lowest AND / OR - the ETFs might bottom out a bit more over the next few months (I disclaim my idealism ) My research indicates I might have to wait between 3 and 12 months for either or both of the above to occur. Therefore, I'm considering a tactical plan :- - buying a short term low transaction cost ETFs (e.g. Newfunds Govi which is offering smashing rates of 11.5%) - selling the ETF when the above 1 or 2 conditions are met - Buying the international ETFS I know short buying/selling are shunned upon due to costs but (Rough calculations) - Given the Newfunds Govi offering roughly R0.5 dividends and over 10% Returns -- Interest Income over 6 months R47619.05 (R0.5 per unit) -- Income Tax of R 14 285.71(Close corp rates 30%) -- Capital Gain of R45000 over 6 months (at 9%) -- CGTax off R10 080 (Close corp net eff rate of 22.4%) -- minus total transaction fees of R500 (0.05% on R 1M selling after 6 months) -- Profit R 67 753.33 Using similar rough calculations on a money market at 5.5% I should only get R19250. Feedback requested: 1. Is my tactical plan really that nonsensical/risky? 2. I suspect that given the low The NF TRACI ETF will offer low returns given the current interest rates dive? 3. Are there any other options/suggestions?
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