Thanks for dropping by Safe Investing South Africa. I am on a journey to build wealth my way. For any questions or comments, feel free to contact me.

9 Oct 2012

SETTING A CAR FUND

Back in July I mentioned my plan to set a car fund here. I was to choose between that and buying a car through the traditional high interest car loan. The thought has never left my head since. The most tricky part was on the choice of saving/ investment tool. It was either the money market, similar to the Just Invest account that I use for the emergency fund, or stocks through an index fund.

I then went ahead to compare the Mr's index funds using the spreadsheet (I love excel). Remember how I go on and on about the Dividends as a great form of passive income. So Satrix DIVI was an obvious winner. It has done well in the past year. Its done well both on capital growth and dividend pay out compared to Satrix 40. That's all I compared.

Setting a car fund using Satrix DIVI

See the comparison above. Its not as dramatic in a 3 year graph. But, like I mentioned, the high dividend payout is my main motivation. I will stick with the DIVI for the car fund. Its the R5000 per month until I cant take the car shopping abstinence anymore. I hope I can hold on for 5 years. If I don't, its no big deal, I guess. Just saying.

Lets now take a closer look at the share basket in this index fund:
Financials 38.7%
Industrials 18.27%
Telecoms 12.67%
Materials 9.67%
Consumer Services 15.67%
And Others

Whats not to like. I went ahead to check the individual shares in those categories. I liked them. And the 20% growth for the past year also helps. I will report on this monthly as well. Hope its a fun and profitable 5 year ride. Browse the individual shares in the basket below.

Share Basket Constituents for Satrix DIVI - October 2012
Share Name
Industry
Weight
ABSA Group Ltd
Financials
3.67%
African Bank Inv Ltd
Financials
3.52%
Allied Elec Corp Pref
Industrials
3.38%
Allied Technologies Ltd
Telecommunications
4.95%
AVI Ltd
Consumer goods
2.36%
Coronation Fund Mngrs Ld
Financials
4.47%
Exxaro Resources Ltd
Basic Materials
2.61%
Firstrand Ltd
Financials
2.57%
Investec Ltd
Financials
3.16%
Investec plc
Financials
2.96%
JD Group Ltd
Consumer services
3.61%
JSE Ltd
Financials
2.51%
Kumba Iron Ore Ltd
Basic Materials
4.71%
Lewis Group Ltd
Consumer services
4.46%
Liberty Holdings Ltd
Financials
3.58%
MMI Holdings Limited
Financials
3.67%
Mondi Ltd
Basic Materials
2.33%
MTN Group Ltd
Telecommunications
3.48%
Nampak Ltd
Industrials
3.44%
Nedbank Group Ltd
Financials
2.88%
PPC Limited
Industrials
3.24%
Remgro Ltd
Industrials
4.54%
Reunert Ltd
Industrials
3.64%
Sanlam Limited
Financials
2.70%
Sasol Limited
Oil and Gas
2.81%
Standard Bank Group Ltd
Financials
3.02%
The Foschini Group Limit
Consumer services
2.85%
The Spar Group Ltd
Consumer services
2.19%
Vodacom Group Ltd
Telecommunications
4.16%
Woolworths Holdings Ltd
Consumer services
2.52%

0 comments:

Post a comment