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Spreadsheet Ranger

Who has RSA Retail Savings Bonds?

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In the spirit of diversification, I am contemplating if I should put some money into an RSA retail savings bond?

I have R20 000 which I want to invest for the short term (14 - 24 months) I don't think I will easily be able to match 5 - 7% growth in EasyEquities with share picking and I don't feel like putting this into an ETF either. 

I would preferably want the interest earned to be re-invested into the account. 

Any ideas where best to put this money, it's far too tempting to keep it in my Capitec Account (too easy to access for stupid stuff like Sushi.)

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The bond market does not look like a bad option if I invest for 2 years.
2018-12-13_13-11-08.thumb.png.8a1b40617d10de4aa58141b30d02c40d.png

 

Alternatively, I am thinking of maybe putting it in a PTXTEN ETF (Should get quarterly dividends) - Any idea how to work out what that will be?

2018-12-13_13-11-36.thumb.png.67fc098abcc069f9bf088e5c091b2f16.png

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PTXTEN is looking extremely attractive at the moment. With an 8.61% dividend yield for the past year (probably will be over 10% next year now that the price per units has dropped so much this year), this  means you'll be scoring at least a 10% return on this ETF even if the price stays flat. If the market recovers and we get double digit growth again next year, it's possible we might even be getting a 25% - 30% return on this ETF next year. I've bought quite a bit of PTXTEN in the past two months.

 

Also look at bond ETFs, which give you more flexibility than a two year fixed bond. The NFGOVI bond ETF in particular has done well this year with a 7.61% growth so far. But as long as PTXTEN doesn't drop further, its dividends are still better. Of course, there's also the chance it will continue to drop, whereas bonds or bond ETFs are a safe bet.

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