James asks: If I had R250 000 to invest for one year, where would you advise I invest it?
Maya replies: This is too short a period to invest into any risky assets, so cash is your best option. Look for a cash investment that would give you the highest return. It still seems like Capitec is coming in with the best rates, providing 7,6% for a 12-month fixed deposit.
I recently came across an investment that was offering 20% return over one year. It uses the money as bridge financing for people who have just sold their homes and need the funds before transfer takes place. But you have to ask yourself, what would happen if the sale of the property fell through and why is the bank not lending them the money? These sorts of investments should raise warning bells — any return you receive above cash means that some risk is being taken and the risks are seldom explained.
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