Why the Stash app is becoming popular with DIY investors
Liberty's Stash app is helping a growing army of new investors overcome the barriers associated with Do It Yourself investing which can seem expensive when using many of the complex trading platforms on offer. Start-out investors often find that things like platform and trading fees overwhelm their profits, particularly when investing small amounts. This, coupled with the complexity of the investment options on offer and the amount of time and effort they have to put in to make informed investment decisions, often turns out to be a frustrating DIY investment experience.
Besides network charges that may be incurred while using the app, Stash is totally free of fees, charges or costs. The app is designed to simply enable you to have a Tax-Free Investment account and to continue investing in it. The app has received over R240 million in investment contributions since its inception.
"With TFIs, all profits and proceeds earned from investments are not taxed. This means that you get your full investment return on your contributions, which maximises the compound growth effect over time," says Glenn Grimley, Chief Specialist for Digital Proposition Management at Liberty.
"With Stash you can open a tax-free investment account in less than 90 seconds, and you can contribute up to R36,000 per year. There is no paperwork, no intermediary, no debit order, no minimum investment contribution, or minimum balance. And best of all, there are no fees and no tax," he says.
The Cash+ portfolio option provides a guaranteed 3.5% effective annual growth rate for investors seeking low risk, yet consistent, returns. For those with a higher risk-return appetite, Stash's SA Top 40 Shares portfolio tracks the performance of the 40 biggest companies on the Johannesburg Stock Exchange for higher potential returns, at a higher level of risk. Customers can choose to invest all their money into either portfolio or split their money between the two.
"Stash is unique because of the way we approach investing based on the customer's personal lived experiences and financial capability at any point in time. We offer them the ability to contribute from as little as R5 a day, if they want, into their investment. In this way you can 'eat' the investment elephant one daily Stash contribution at a time without committing to hefty monthly debit orders," he says.
Access to your Stash account is also immediate and investors can change how much and when they Stash directly from the app, giving them full control over their investment to fit in with their financial reality in real time. With Stash, you can withdraw at any time too, directly from the app. There are no fees or penalties for withdrawing some or all your investment balance.
The best part is that your account doesn't close automatically if you withdraw and you can start stashing again as soon as you want to, saving up for you next investment goal and creating up your own investment journey.
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