Nana asks: I have attended a presentation on investing in the stock market called Cashflow Pro, which is based in Durban. Training is provided as well as software at a certain fee. What advice can you give me? Also, I need info on fund managers that have accumulated a good reputation in the market.
Maya replies: Be very wary. There are a lot of these programmes in the market which claim will help you make millions out of the stock markets. If they are making promises of massive returns you can be assured that it is not above board.
Many online brokers have software included on their website and some offer training. All of this is covered by the monthly admin fee. For example, Standard Bank’s Online Trading only charges an administration fee of R50 per month to trade with them and they provide software and regular educational seminars.
If you really want your own software, traders recommend amibroker.com.
In terms of quality fund managers, Nick Brummer of InvestOnline refers to ”premium brand” asset managers which deliver above average returns over time. Just remember that even the best fund managers will underperform the market over short-periods of time so once you have selected a fund manager you have confidence in, stick it out — don’t go chasing the next best thing. Brummer’s premium brands include Investec, Coronation, Nedbank Rainmaker fund, Prudential and Allan Gray.
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