HonestMarkets

Understanding Investments in South Africa

A straightforward, no-nonsense look at how investing works, what South Africans actually need to know, and the realities behind the headlines.

Common Questions Answered

1970 Year JSE was founded

R20+ tn JSE market cap (2025)

~60% SA adults have no retirement savings beyond pension/provident fund

Clear Explanations

Market Data

Practical Numbers

Risk Awareness

Why HonestMarkets Exists

South Africans hear a lot about investing — from WhatsApp groups to radio ads — but straightforward, unbiased information is surprisingly hard to find.

We started HonestMarkets simply to explain how different investments actually work, what the real historical returns have been on the JSE, unit trusts, ETFs, property and offshore assets, and what risks people tend to overlook.

No product pushing. No affiliate links. Just facts, context and the occasional reality check.

15+

Years of JSE return data analysed

400+

Articles & guides published

Independent Research

2023–2025

Key Topics We Cover

Plain-English guides to the things South Africans most often ask about

Start here

Investing doesn’t have to be complicated — but it does have to be understood

Most people in SA invest through retirement funds, tax-free savings accounts or the JSE via ETFs and shares. We break down how each vehicle actually works, what it costs, and what long-term evidence tells us about expected outcomes.

Tax-Free Savings Accounts

How the R36 000 annual and R500 000 lifetime limits work, which platforms have the lowest fees, and real after-tax return comparisons.

Property vs Shares

20-year total return comparison between the JSE All Share Index, residential property in major metros, and the effect of costs and leverage.

Offshore Investing Rules

How the R1 m discretionary + R10 m foreign investment allowances work, SARS requirements, and the real cost of going offshore via rand-denominated funds.

Retirement Annuities Examined

Regulation 28 limits explained, historical performance of balanced funds, and when an RA actually makes mathematical sense.

Common Investing Mistakes

Chasing past performance, paying high fees, trying to time the market — what decades of local and global data show about these behaviours.

Quick Facts

Numbers every South African investor should know

JSE Long-Term Returns

From 2000–2025 the FTSE/JSE All Share Index delivered roughly 10.8% annualised (including dividends) — before fees and taxes.

Most Referenced

Impact of Fees

A 2% annual fee on a R1 million portfolio over 30 years reduces the end value by almost 45% compared to a 0.4% fee.

Time in Market

Missing the JSE’s 10 best months since 1995 turns a 10.8% return into under 4%.

Residential Property

Cape Town and Joburg residential property averaged ~7–8% annual growth over the past 20 years — before costs.

Global vs Local

MSCI World Index (in USD) returned ~7.5% p.a. over the same period; rand depreciation added extra return for SA investors.

54%

SA adults have never invested outside retirement funds (2024 survey)

0.25–0.75%

Typical ETF TER on JSE

R36k

Annual TFSA contribution limit

15%

Dividend withholding tax for individuals

Frequently Asked Questions

Real questions South Africans ask — answered without the sales pitch

Is it still worth investing if I only have R500 a month?

Yes. Even small monthly amounts grow meaningfully over decades because of compounding. The key is choosing a low-cost ETF or index fund (fees under 0.5%) and staying invested through market ups and downs.

Should I rather pay off debt or start investing?

Generally pay off any debt above 10–12% interest first (credit cards, personal loans). Below that level, the long-term expected return from a balanced portfolio usually beats the interest cost — but only if you can truly commit for 7+ years.

Are offshore investments only for the rich?

No. Many JSE-listed ETFs give you global exposure in rands with no need for exchange control clearance. If you do want direct offshore, you can use your R1 million discretionary allowance each year — no SARS approval required.

How much of my money should be in property?

Most academic studies and long-term SA data show that owning your primary residence is sensible, but additional buy-to-let properties have underperformed shares after costs and tax for most of the past two decades.

Can I lose more than I invest in the stock market?

No, not with ordinary shares or ETFs. The worst case is the investment goes to zero. You only risk more than you invest if you use margin trading or complex derivatives — which most retail investors should avoid.

Contact

Have a question or topic you’d like explained?

Location

Cnr Moss Kolnik & Arbour Road, Amanzimtoti, KwaZulu-Natal, 4126, South Africa

Email

[email protected]

Phone

+27319042233

Suggest a Topic

We don’t offer personal advice, but we’re always looking for new topics that confuse South African investors. Let us know what you’d like explained.

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