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How does the annual investment increase work?

We're pretty sure you've probably noticed that each year the cost of almost everything seems to go up. 


This is a concept called Inflation which is defined by Investopedia as follows: 

A sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. 


In terms of Investing, if you started investing R300 a month and you haven't increased that amount since you started 10 years ago, you are not keeping up with inflation.


To keep-up, it is essential to increase the amount you are investing each year in line with inflation. Taking this simple action will mean that your investment will be far more effective in the long-term.


With the best interests of our Investors firmly in mind and to keep them on the right Investment path, we have therefore chosen to add an annual increase percentage alongside the recurring investment amount when you set up a recurring investment (see image below).




We have set the default percentage at 10% (see highlighted number in image above) which should ensure that you are always slightly ahead of inflation, but you can change this should you wish to. Heck, you can even make it 0% if you don't like the idea at all. Just remember that your money won't be worth what it could if you keep that above inflation.


PLEASE NOTE: 

This percentage increase will only be implemented on the yearly anniversary of the date on which you first set the recurring investment up.

 

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