Calling all alumni of the JSE Investment Challenge
The JSE Investment Challenge celebrates its 50th anniversary this year and is calling on alumni of the challenge to share their stories and experience of their game.
‘We’re looking for stories about the impact the JSE Investment Challenge has had on past participants’ lives, careers and investment choices,” says Ralph Speirs, CSI officer at the JSE. If you are a previous participant, you can share your story here.
The challenge, which caters for high school and university students, is aimed at improving financial literacy and giving young people a virtual platform to practise trading so they are equipped with the skills to invest their own money eventually. There is also a virtual trading challenge for adults, which is open until the end of September.
Investing on the JSE
There are a few ways to invest on the JSE but investing directly is not an option for individual investors. You have to invest through a stockbroker, or your bank. Speirs cautions that if you choose to invest via your bank, you should make sure you understand what product you are getting into. “The banks offer both savings and investing options so you need to be clear about whether you are getting a product where you can trade or one where you are just tied into saving.”
The minimum amounts you invest may vary depending on the product you choose to invest in, but the JSE itself does not have minimum investment amounts. Speirs says you can expect to pay a stockbroker a monthly admin fee as well as a second fee, which is usually a percentage of the trade. “This could be a percentage or a minimum amount such as R100, whichever is the greater,” he says.
Almost all online brokerages will offer you free educational seminars or online assistance. Take advantage of this and find out as much as you can so that you are an informed investor.
Read more in Daily Maverick: JSE Investment Challenge kicks off for the 50th year
If you are just starting out, then you should invest in shares in different sectors so that your investment portfolio is diversified and you are protected from losses. For example, if you invest only in telecommunications companies such as MTN and the sector goes through a slump, then you will end up losing money. However, if you also have money invested in retailers, such as Shoprite, then your portfolio will be able to withstand the losses from the telecommunication companies.
One of the benefits of investing via the JSE is that listed companies have stringent regulations they must adhere to. Their financial results have to be fully disclosed at least twice a year and they are answerable to you, their shareholder. However, as with any investment, there are risks. Share prices can move down at any time. If you want an income stream, then you could consider a company that pays out dividends once or twice a year to shareholders. A dividend is a sum paid to shareholders out of a company’s profits. However, be aware that not all companies choose to pay dividends. You also run the risk of losing all your money if a company in which you invest heavily goes bankrupt.
Before you start investing on the JSE, there are a few questions Speirs suggests you ask:
- What products can you buy?
- Is the platform easy to navigate?
- What are the costs involved?
- What kind of investment education or information does their platform provide in order to support you in your investment journey?
Mpumelelo Secondary School from Mpumalanga was a winner for a third month in a row. The Section 21 school has entered 10 teams or 40 pupils in the challenge.
May 2023 winners
The category winners for May 2023 were:
- Income category: MP Unshaken Traders from Mpumelelo Secondary School, Mpumalanga, with income of R4322.12;
- Equity portfolio: The Proclaimers Reborn from Curro Durbanville High School in the Western Cape with growth of 5.36%;
- Speculator portfolio for schools: CEG Settlers Investors from Settlers High School in Cape Town with growth of 5.33%;
- ETF/ETN portfolio for schools: LAM Castle Bridge 5 from Castle Bridge School in the Free State with growth of 5.13%;
- Speculator portfolio for universities: Koffee en Beskuit from Stellenbosch University, Western Cape, with growth of 6.18%; and
- ETF/ETN portfolio for universities: INV_Alpha Investments Ltd from the University of Cape Town with growth of 0.91%.
The JSE Investment Challenge is proudly supported by Daily Maverick. DM