Samuel says: I want to invest the little that I earn in an overseas investment account.
Maya replies:
It is not clear why you want an overseas investment account. While investing outside of South Africa is part of a well diversified portfolio, it should not be your only investment. Make sure this fits in with your financial needs.
Rand denominated funds
The best starting point is to invest in a rand denominated fund that invests overseas. There are many unit trusts that provide this, such as Allan Gray, Investec, Old Mutual and Coronation. You can set up a debit order and invest each month in rands, but your investment is in overseas markets and currencies. When you sell the investment you will get your money back in rands.
You can also invest in the range of exchange-traded funds that are listed on the JS, but which track the overseas markets. This range is called dbx-trackers and could be a good option if you are looking at building up a share portfolio by investing on the JSE. Again you invest in rands.
Taking money offshore
If you are looking to take money offshore then you would have to get tax clearance from the receiver of revenue. You would need to invest a lump sum. Even though you would be taking dollars or euros overseas and investing these, I recommend that you use local companies like Investec, Coronation, Old Mutual or Allan Gray, as this would make it easier to manage. They can offer a range of investments from money market to equities (shares). However, the money can remain overseas indefinitely and if you sell, the money remains in dollars or euros.