After a trying year, we all need a break – especially our finances. But with high fees, there’s little chance of recovery, which is why Sygnia has removed their management fees from the Sygnia Money Market Fund.
After a trying year, we all need a break – especially our finances. But with high fees, there’s little chance of recovery, which is why Sygnia has removed their management fees from the Sygnia Money Market Fund.
Think of it as a fee holiday, giving you the chance to replenish your savings as you consider the hidden impact of fees on your investments.
The double blow of fees
The reality is that fees can take a huge piece of your investment portfolio.
You may be wondering how this can be; the impact is twofold. As your account balance grows, you pay more in fees because the fees are calculated on a percentage of your assets. And every rand used to cover fees is one less rand left to invest in the portfolio to compound and grow.
To put this in context, reducing your investment fees from 2.5% to 0.5% could increase your overall investment by up to 60%.* That’s a lot of money you’re losing out on.
What is the Sygnia Money Market Fund?
The Sygnia Money Market Fund is a low-risk investment with a better rate of return than a bank account. You can access your money easily, making it a great vehicle for short-term savings or as an emergency fund – the value of which has become very apparent over the past year.
What happens when the fees come back?
Sygnia has always been driven to make fees fair. Fees will return in 2022, but we will keep them low and we will remain transparent about our fee structure.
Now is the time to take advantage of this fee holiday and give your money a break. Invest in a Sygnia Money Market Fund before 30 June to make the most of 0% management fees until the end of 2022.
One more thing
Sygnia is also offering the Sygnia All Bond Index Fund at no management fee until 31 December 2022 if you invest before 30 June 2021. This fund invests in a broad selection of South African bonds and has a low- to medium-risk profile. It is suitable for investors who are risk averse and are looking for an investment with an equal focus on capital growth and income generation.
Summary:
- Take a fee holiday with Sygnia.
- The effect of fees is greater than you think.
- Invest in a Sygnia Money Market Fund before 30 June and pay 0% management fees until the end of 2022.
Would you like to invest in the Sygnia Money Market Fund or the Sygnia All Bond Index Fund? You can find more information here. You can also call us or send us an email. We are here to help.
* “A regular saver who reduces the charges on their retirement account from 2.5% of assets to 0.5% of assets annually would receive a benefit 60% greater at retirement after 40 years, all else being equal. For someone who is a member of a preservation fund for 30 years, this increases to 80%.” Source: National Treasury, Charges in South African Retirement Funds, July 2013.