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A Recurring Investment on a minor account is a process in which someone who operates a minor account, decides he / she wants to invest an amount of money into a particular instrument (share / ETF etc.) on a regular basis.
Example:
I decide that I can save R1,000 per month to go towards an investment for my daughter in her minor account on EasyEquities, and with that R1,000, I wish to purchase R650 worth of Satrix MSCI World Index ETF and R350 worth of CoreShares S&P 500 ETF.
Without a recurring investment in place I would need to go onto the platform every month, EFT the funds to my account, wait for them to arrive in my available funds, and then when they do go and make 2 separate purchases of those chosen ETF's.
Instead, I can set up a Recurring Investment to do that for me every month (or quarter or year), and then forget about it, comfortable in the knowledge that every month my money will go to EasyEquities and will be invested in those ETF's at the times I've set up.
A recurring investment on a minor account is a two-step process involving:
Moving money / funds from your bank account, into the EasyEquities account of the minor in question. Without the funds, you cannot make the investment. Simple.
Then telling the platform what to purchase with the funds that have been transferred.
On a Minor account, the Recurring Investment must always be setup to operate out of the Free Cash (available funds) of the account, rather than via debit order.
Because Recurring Investments are always to be setup using Free Cash (available funds), the Authorised User of the account needs to ensure that those funds are transferred into Free cash and are available for use on the date the Recurring Investment runs or it will fail and the desired purchase will not be made.
Here is an article on how to move funds into a Minor account for a Recurring Investment.
Once the account is funded, the instruction to invest those funds can be set up by following one of the 3 methods below.
A Recurring Investment can be set up by following one of the 3 easy methods:
1.From the Recurring investments page
- Log in to your EasyEquities account
- Click on the My Recurring Investments option in the stack menu which appears at the top left of the page.
- Click on the Setup Recurring Investment button under the specific type of recurring Investment you'd like to make.
- Equities, bundles or baskets
Clicking on the setup button under either equities, baskets or bundle type investments will take you to the Browse companies page from which you can search for and select the shares, ETFs, bundles or baskets you would like to invest in. After making your selection you should arrive at the Buy page of that share or instrument and can then continue to method 2 below. - Available Funds
Clicking on the setup button under Available Funds will take you directly to the Recurring Investments setup page. Select the payment method you would like to use to move funds into your free cash - the only option for this type is Debit Order from Bank Account which will already be selected as the default option when you arrive on the page. Please note, if your bank account is not verified, you will see a warning that debit order functionality isn't available until you verify your bank account. Consult this FAQ article for details on how to do so.
- Equities, bundles or baskets
2. From the Buy page
- Log in to your EasyEquities Account
- Navigate to Invest Now and select the share, ETF, bundle or basket you would like to invest in.
- Select / enter the amount you'd like to invest.
- Click on the Recurring button and you will be taken to the setup page.
3. From an instrument (share / ETF/ bundle/ basket) you own
- All the instruments in your portfolio can be found on the Account Overview screen of the relevant account they are in by selecting 'View Holdings'.
- Each item in your portfolio has a small expandable arrow next to the Sell or Buy More options.
- Select 'Recurring' on this expanded menu and you'll be taken to the setup page.
Recurring Investment setup
Once you reach the recurring investments page you'll be able to specify a number of details related to your transactions.
- The recurring investment amount as well as a 10% default value for the annual increase percentage can be changed on this page.
- Choose whether you want the charges option for the specific Recurring investment to exclude / be inclusive of transaction fees. For each recurring investment setup, you can choose the option that suits you at the time. This will override your site wide excluded vs inclusive settings.
- Choose a payment method for your Recurring Investment. For a recurring investment on a Minor account, the "User Account Free Cash" option must always be chosen. Choosing this option will mean it is your responsibility to have free cash available in your account on the selected date of the Recurring Investment. You can set this funds transfer up to happen on a regular basis by following the instructions in this How to move funds into a minor account for a Recurring Investment? FAQ
- Accept the terms and conditions by clicking on the little box presented to you on the bottom left of the page.
- Choose when you want the payments to occur. You have the choice of making the recurring investment every month, quarter or year. If you choose the quarterly or annually options, you will be required to select the month on which you want the quarter or year to start.
- Choose the day on which you'd like the recurring investment to be made. You can choose the 1st, 15th or 28th of the month.
Once you have completed all your selections, click on the continue button - this will take you to the confirm your recurring investment page, which will summarize the full details of your recurring investment. Once you have checked all the details of your recurring investments and are happy they are correct, click on the Add to recurring button at the bottom right of the confirmation screen.
To view the costs associated with Recurring Investments, please consult our EasyEquities Cost Profile.