Absa Inflation-Linked Income Fund

Absa Inflation-Linked Income Fund, Find Out How It Works & Benefits

Are you interested to learn about the Absa inflation-linked income fund in South Africa? Then read through this guide.

This fixed-interest portfolio predominantly consists of nominal and inflation-linked bonds and other fixed-income securities with long-term maturity bias.

The underlying investments are actively managed and change over time to reflect the manager’s assessment of interest rate trends.

We will first show you the requirements to apply for this fund in South Africa.

What Are The Requirements

Below are the basic requirements to apply for this fund:

  • You should have a South African ID signed three times
  • A birth certificate if you are below 18 years
  • Proof of address such as a lease or rent agreement not older than three months 
  • Submit your tax number or that of a guardian if you are not of the legal age
  • Proof of income If you are not an Absa client

With these documents, you can apply for the fund via https://www.absafinancialservices.co.za/UnitTrustApplication/?Fund=Absa-Inflation-Linked-Income-Fund.

These are the requirements to apply for the Absa inflation-linked income fund in South Africa.

Absa Inflation-Linked Income Fund

This bond portfolio predominantly invests in nominal and inflation-linked bonds with a longer-term maturity bias.

The fund enables investors to obtain a real return that preserves purchasing power even when inflation is high.

This fund is ideal for risk-averse investors who want positive real returns.

The fund’s objective is to provide a reasonable level of current income and capital stability. 

You need an initial investment of R2 000 and a minimum monthly contribution of R200.

As of December 2021, the fund size of this investment is R271.78 million.

Positions in the worldwide markets are constantly monitored to ensure they remain within the investment criteria over the investment term,

These are the features of the inflation-linked income fund in South Africa.

What Is The Performance Of Absa Inflation-Linked Income Fund In South Africa

Class A performs better than the Benchmark, with the 3-year investment having a cumulative total return of 7.82% for class A and 6.06% for Benchmark.

The 6-month performance cumulative total return seems to be the lowest, with 2.91% for class A and 3.72% for Benchmark.

This is all you need to know about Absa inflation-linked income fund in South Africa.

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