Investing in South Africa: Beginner's Guide to Start (2025)

Why Investing Matters

Saving money in a bank account is safe, but the returns are often too small to outpace inflation. Investing, on the other hand, allows your money to grow faster over time. It’s how you build wealth, reach financial goals, and secure your future.

Think of investing as planting a tree: the sooner you plant it, the sooner it grows, and the more shade (or fruits) it can provide later.

How Much Do You Need to Start?

The good news? You don’t need to be rich to start investing. Many platforms in South Africa let you begin with as little as R50 to R500 per month. The key is consistency — small amounts, invested regularly, can grow significantly over time.

You can generate this as an extra income, read our Side Hustles in South Africa: Download an App and Earn Money by Completing Simple Tasks

Popular Investment Options in South Africa

1. The Stock Market

• You can buy shares of companies listed on the Johannesburg Stock Exchange (JSE).

• Apps like EasyEquities make it possible to invest with just a few rands.

• Best for: Long-term growth and wealth building.

2. Exchange-Traded Funds (ETFs)

• ETFs are bundles of shares you can buy in one go — for example, the Satrix 40 ETF tracks the 40 biggest companies on the JSE.

• They’re low-cost, diversified, and great for beginners.

3. Unit Trusts

• Professionally managed investment funds where many people pool their money. That's why these are called pooled investments or collective investment scheme (CIS).

• Available through banks, insurers, or asset managers.

4. Property Investments

• Beyond buying physical property, you can invest in REITs (Real Estate Investment Trusts) listed on the JSE.

• Provides exposure to property without needing millions to buy a house.

Understanding Risk

Every investment carries some risk. Here’s a simple way to think about it:

• Low risk = Lower returns, but safer (e.g., money market funds).

• Medium risk = Balance between growth and safety (e.g., ETFs, unit trusts).

• High risk = Higher potential growth but more volatility (e.g., individual shares, crypto).

Step-by-Step: How to Start Investing in South Africa

1. Set your goal – Are you saving for retirement, a home, or long-term wealth?

2. Choose an investment platform – Examples: EasyEquities, SatrixNOW, OUTvest, or via your bank.

3. Decide your amount – Start small and grow it as your income allows.

4. Pick your investment – ETFs are the simplest entry point for most beginners.

5. Stay consistent – Invest monthly, no matter how small.

6. Review annually – Check progress, adjust if needed, but avoid panic-selling.

What This Means For You

Investing is a journey, not a once-off event. The earlier you start, the more time your money has to grow. You don’t need to be an expert, just start small, stay consistent, and let time do the work.

Remember: The best time to invest was yesterday. The second-best time is today.

Read our Investment Fundamentals: Understanding the Basics of Building Wealth