Many financial advisors exploit these opportunities to sell products. The capital guarantee is normally offered at the end of a five-year term. In other words, you have lost R31 942. The worst is that you indirectly paid for this guarantee. Investment companies have exploited the recent market volatility and resulting investor fear to sell their products.
Unscrupulous salesmen disguised as financial advisors are to blame.
A correctly structured portfolio based on the investor s personal risk profile will add far more value than an expensive marketing promise of a capital guarantee will. In the next column, I will discuss investment risk, which will assist you in choosing the most appropriate investment to suite your needs.