The Beginner’s Guide to Investing in South Africa
Investing might sound intimidating at first, but it doesn’t have to be. With the right knowledge and a clear plan, anyone, even with a small starting amount, can begin building wealth in South Africa. This guide will walk you through the basics so you can start investing with confidence.
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.
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).
The rule: Don’t invest money you can’t afford to leave untouched for at least 3–5 years.
Step-by-Step: How to Start Investing in South Africa
Set your goal – Are you saving for retirement, a home, or long-term wealth?
Choose an investment platform – Examples: EasyEquities, SatrixNOW, OUTvest, or via your bank.
Decide your amount – Start small and grow it as your income allows.
Pick your investment – ETFs are the simplest entry point for most beginners.
Stay consistent – Invest monthly, no matter how small.
Review annually – Check progress, adjust if needed, but avoid panic-selling.
Conclusion
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.
Ready to take your first step?
Check out our article: 5 Budgeting Hacks That Actually Work to free up extra money you can start investing right away.