Tax-free savings

Maximise the long-term growth of your savings by benefiting from a Tax-Free Savings Account (TFSA).

What is a TFSA?

Tax-Free Savings Accounts (TFSAs) were introduced in 2015 to encourage individuals resident in SA to save more. The growth and income received on a TFSA investment are tax free. This means you are not liable for any capital gains tax or tax on the dividends and interest received on your investment.

You can invest from as little as R500 per month or make lump sum payments. You may also invest on behalf of your minor child.

Benefits of the Ninety One Tax-Free Savings Account

01

Both the growth and income you receive on your investment are tax free – no capital gains tax (CGT) or tax is levied on the dividends and interest received.

02

It is a convenient and flexible way to accumulate savings over time – as you won't incur tax, more of your money is available to benefit from the power of compounding growth.

03

Parents can invest on behalf of minors (withdrawals must be paid into a bank account in the minor’s name).

04

You can stay invested as long as you want to. The longer you remain invested, the bigger your potential growth and tax saving.

Here’s how it works

What you need to do:

Complete the Ninety One Tax-Free Savings Account application form online. Select one or more funds from the Ninety One range of funds and make a lump sum and/or monthly investment.

View our Core Fund range

What happens with your money?

The fund managers, in this case Ninety One, invest your money in a portfolio of assets such as equities, bonds, cash and listed property, based on your fund selection.

We then manage the investment on your behalf according to the funds’ objectives, for example, beating inflation over a certain time period. This plays a key role in determining the return on your investment.

How much can you invest in a TFSA?

Minimum investment amount: R500 per month or R10 000 as a lump sum
Maximum investment amount: R3 000 per month, R36 000 per tax year and a R500 000 lifetime limit per person

What happens when you breach these limits?

If you exceed the maximum investment amounts, you will be subject to 40% tax on the excess amount.
If you withdraw money from an existing TFSA and re-pay it into any of these accounts, it will be regarded as a new contribution and will count towards your investment limits. So, make sure you stick to the lifetime and annual limits.

Important information

All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. We are not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. No one should act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. We endeavour to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. We do not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only.

In the event that specific funds are mentioned please refer to the relevant fact sheet in order to obtain all the necessary information in regard to that fund.

Collective Investment scheme funds are generally medium to long term investments. The value of participatory interests may go down as well as up and past performance is not necessarily a guide to the future. Funds are traded at ruling prices and can engage in borrowing and scrip lending. The fund may borrow up to 10% of its market value to bridge insufficient liquidity. A schedule of charges, fees and adviser fees is available on request from the manager. Additional adviser fees may be paid and if so, are subject to the relevant FAIS disclosure requirements.

Investment Team: There is no assurance that the persons referenced herein will continue to be involved with investing for this Fund, or that other persons not identified herein will become involved with investing assets for the Manager or assets of the Fund at any time without notice.

Investment Process: Any description or information regarding investment process or strategies is provided for illustrative purposes only, may not be fully indicative of any present or future investments and may be changed at the discretion of the manager without notice. References to specific investments, strategies or investment vehicles are for illustrative purposes only and should not be relied upon as a recommendation to purchase or sell such investments or to engage in any particular strategy. Portfolio data is expected to change and there is no assurance that the actual portfolio will remain as described herein. There is no assurance that the investments presented will be available in the future at the levels presented, with the same characteristics or be available at all. Past performance is no guarantee of future results and has no bearing upon the ability of Manager to construct the illustrative portfolio and implement its investment strategy or investment objective.

Certain Ninety One SA funds are offered as long-term insurance policies issued by Ninety One Assurance Limited, a registered insurer in terms of the Long-term Insurance Act. These pooled products are administered by Ninety One SA (Pty) Ltd (an authorised financial services provider) and underwritten by Ninety One Assurance Limited.

This is the copyright of Ninety One SA (Pty) Ltd and its contents may not be re-used without Ninety One’s prior permission. Ninety One SA (Pty) Ltd is a member of the Association for Savings and Investment SA (ASISA). Ninety One SA (Pty) Ltd & Ninety One Investment Platform (Pty) Ltd are authorised financial services providers.

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