In a world where inflation and market volatility can erode the value of your savings, ENHANCED Investment Products offer a compelling solution for long-term wealth creation. These products are designed to give investors a head start by adding value to their investment upfront on Day 1 of the investment which many people don’t even know is possible.
What Is an Enhanced Investment Product?
Enhanced investment products are structured financial solutions that provide additional value at the start of your investment. This enhancement is typically a percentage of your initial investment amount, added to your portfolio immediately. It’s a way for financial institutions to reward long-term commitment and strategic investment behaviour.
Enhanced Products are Cost-Effective, Single-Premium Solution that tailored for investors who:
- Are cost-conscious
- Can commit to a minimum five-year investment term
- Have at least R50,000 to invest
Key Benefits:
Upfront Enhancement: Receive up to 8,5% % extra added to your investment immediately. This can go change depending on the advice fee structure.
Market-Linked Returns: Choose from a range of funds, including funds with guarantees, which secures 85% of the highest daily unit price.
Flexible Fund Structures: Options include guaranteed funds, core funds, and own-choice funds.
Death Benefit: Full fund value (including enhancement) is available upon death, subject to notification timelines.
The Power of Day 1 Enhancement
One of the most compelling features of Enhanced Products is the 8,5% enhancement added to your investment on Day 1. This means that if you invest R100,000, your investment immediately becomes R108,500—before any market growth even begins.
This upfront boost gives your money a head start, allowing you to earn returns on a larger base from the very beginning. Over time, this can significantly increase your total investment value, especially when combined with the effects of compounding.
Compounding Growth: Your Wealth Multiplier
Compounding is the process where your investment earns returns, and those returns in turn earn more returns. When you start with a larger base—thanks to the Day 1 enhancement—your compounded growth is even more powerful.
Who Should Consider Enhanced Products?
This product is ideal for:
- Investors seeking inflation-proof, long-term growth
- Those who prefer a once-off investment rather than monthly contributions
- Individuals who are unlikely to switch strategies frequently or need early access to funds
It’s not suitable for:
- Investors needing liquidity within five years
- Those wanting to make regular contributions
- Individuals who prefer frequent fund switching or broader fund choices
What Happens After Five Years?
After the initial five-year term, your investment transitions into a Flexible Plan with no term, offering you the opportunity to withdraw immediately or continued growth potential with no reduction fees or limitations.
Final Thoughts
Enhanced investment products represent a smart, strategic way to grow your wealth, especially in uncertain economic times. By leveraging upfront enhancements and committing to a long-term strategy, investors can unlock greater value and build a more resilient financial future.
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