Tax-Free Investment Account - Absa
Linked Investment
Tax-Free Investment
Account
Putting you in control of your investments
Business Banking | 1
Create and manage your own portfolio
This flexible product lets you create a personalised investment portfolio from a range of local Collective Investment Schemes (CIS) Funds as well as JSE-listed Exchange Traded Funds (ETFs) available through the Absa Investment Management Services (AIMS) platform. You can invest up to R36 000 a year and all investment returns are not taxed.
Ideal investor
This product is best suited for individuals who:
? are interested in investing long term ? want flexibility and choice in creating their own
portfolio ? want to take advantage of tax-free
opportunities.
How does the Tax-free Investment Account work?
? Each taxpayer is allowed to invest a maximum of R36 000 per year, subject to a lifetime limit of R500 000, tax-free
? Investors can either invest with a minimum monthly debit order of R250 or a R5 000 lump sum payment subject to fund minimums of R250 per CIS fund and R500 per ETF
? Enjoy flexibility in terms of your investment term, contributions (subject to prescribed
limits), portfolio adjustments and a comprehensive range of CIS and ETFs
? Fees are transparent; with quarterly reporting on your portfolio holdings, investment values and transactions
? This product cannot be ceded
? From 1 March 2018, Section 12T(8) of the Income Tax Act allows for the transfer of Taxfree Savings Accounts (TFSAs) between product providers, in part or full, without incurring a reduction of your annual and lifetime limits.
Tax implications
? Dividends, rental and interest income derived from underlying funds within this product are not taxable (provided you comply with the maximum annual and lifetime contribution amounts)
? Capital gains arising from the disposal of units within the product are not subject to capital gains tax
? Certain information relating to the product is reportable to the South African Revenue Service (SARS)
? Absa may at no point in time provide you with any tax advice and the information above relating to tax is purely for informational purposes
? Please consult a professional tax adviser.
It is the responsibility of the investor to avoid exceeding the limits, and any amount exceeding such will be subject to a 40% tax rate. Consult your independent tax adviser.
What will it cost?
Annual policy fee 0.10% p.a.
Maximum Adviser Fees Per Product
Independent Financial Advisers (IFAs)
Absa Insurance and Financial Advisers
Initial advice fee Annual advice fee
Initial advice fee Annual advice fee
3.00%
1.00%
3.00%
1.00%
Investment Minimums
Lump sum Investment
Recurring Investment
Additional Investment
Repurchase
R5 000
R250 CIS fund / R500
Any
R500 ETF
Fees above are VAT exclusive and VAT will be levied where applicable.
Terms and conditions for this product are available on absainvestments.co.za
Any annual or initial financial adviser fees are negotiated between yourself and your financial adviser.
There is an additional cost incurred in the form of fund management fees and this is dependent on the underlying funds selected.
Risks associated with product
Risk Investment Risk
Portfolio Diversification Risk Liquidity Risk
Description
The product does not guarantee the investment performance of the underlying investments. Such performance will depend on the investments selected, the value of which can increase or decrease. Accordingly, any investment risk will be carried by the investor. Since the underlying investments are generally linked to market performance, a market downturn can lead to a decline in the value of these investments.
The investor should carefully consider the exposure that investing in this product would have on their overall investment portfolio.
The liquidity on the product is directly linked to the liquidity of the underlying funds selected by the investor.
How to get started
Speak to your financial adviser or visit absainvestments.co.za to get started with your investment.
For more information contact AIMS Client Service (operating hours: Monday to Friday 08:00 to 16:30)
Tel: 0860 000 005 Email: aimsenquiries@absa.co.za
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