In our guide today, we will briefly discuss the Absa income enhancer fund in South Africa.
The objective of this fund is to provide investors with a reasonable level of current income and maximum stability for capital invested.
This is a specialized fixed-income fund ideal for short-term investments.
We will first show you the securities included in the investment of the Absa income enhancer fund.
What Securities Are Involved
Below are the securities included in the portfolio:
- non-equity securities
- financially sound preference shares
- debenture stock
- debenture bonds
- unsecured notes
The income enhancer fund may also include a participatory interest in collective investment schemes.
These are the securities included in the Absa income enhancer in South Africa.
Absa Income Enhancer Fund
This low-risk investment aims to provide a reasonable level of current income and capital stability.
You only need a deposit of R2 00 to open this investment.
You have to invest at least R200 every month.
These funds outperform cash over time and hedge against interest rate volatility.
There is a higher level of income than a traditional money market fund.
The fund is suitable for risk-averse investors who want a regular income stream from their capital base.
These are the features of the Income enhancer fund in South Africa.
Requirements To Apply For Absa Income Enhancer Fund In South Africa
Below are the requirements to qualify for the Absa income enhancer fund:
- You need a valid ID signed three times
- Birth certificate if you are not of the legal age
- Proof of address, such as a utility bill not older than 90 days
- You need to submit your tax number or that of a guardian if you are not of the legal age
These are the requirements to qualify for the Income enhancer fund in South Africa.
What Are The Risks
Insufficient buyers or sellers of particular investments may cause delays in trading.
Large fluctuations that make it difficult to make settlements cause large financial losses.
The issuer of fixed-income investments like bonds may not meet the interest payments or fail to repay their borrowed money.
The value of fixed-income investments decreases when the interest rate rises.
This is all you need to know about Absa income enhancer in South Africa.