Ensure a good education for your children with help from the JSE 
This festive season avoid the over spending rush and invest with a tax-free account
 
Johannesburg, 4 November 2016: Every parent wants the best education for their children, but many are or will be faced with the stark reality that they have simply not saved up enough to be able to comfortably fund their children’s tertiary studies. This festive season, avoid the spending rush and rather invest towards something important, like your children’s education, using a tax-free savings account (TFSA).

The JSE Tax-Free Savings Account (TFSA) is a hassle-free way for you to ensure that your children receive a good education in the future from a reputable school or tertiary institution. 

The JSE TFSA provides ordinary South Africans with a way to invest in Exchange Traded Funds (ETFs[1]). ETFs are ideal for first-time investors looking to invest in the stock market, as they provide a basket of JSE-listed shares by tracking a particular stock market index, such as the FTSE JSE Top 40. 

Mpho Ledwaba, Head of Marketing at the JSE, elaborates on some of the benefits: “A small initial investment amount is required to begin investing in our tax-free savings account. ETFs are effective in providing a hassle free opportunity to investors to help them gain exposure to a variety of different securities or shares.”

The JSE TFSA caters to investors across a range of financial fitness, by offering you the flexibility to either make a monthly contribution or a once off lump-sum, depending on your preference and needs. 

The JSE’s TFSA is one of many initiatives by the exchange aimed at improving financial literacy and investor education. For instance, the JSE runs the annual JSE Investment Challenge, intended to increase understanding about financial markets amongst high school learners and tertiary students. There are also online learning modules that can be used to gain greater understanding about the working of the stock exchange as well as the different investment products available.

In addition, the JSE also facilitates Power Hour sessions which are targeted at investors who are already invested in the JSE, but also looking to improve their knowledge of financial markets. 

The JSE is committed to making the exchange more accessible. “Whether it be saving for your financial future; participating in the Investment Challenge or Power Hour session, our intention is to ensure that South Africans establish a culture of investing. Investing doesn’t have to be a daunting task.  We hope to make investing easy and more affordable for all South Africans,” concludes Ledwaba. 

Key features of the JSE Tax-Free Savings Account
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  • Investors are allowed to invest up to R30 000 per annum in monthly payments and limited to a R500 000 lifetime contribution.
  • Investors invest in one of the JSE-listed Exchange-Traded Funds (ETFs) which provide diversification by buying into a basket of JSE-listed investment products.
  • You have the flexibility to either contribute monthly or as a once-off lump sum depending on your needs (limits apply).
  • No Dividend Withholding Tax on dividends earned.
  • No Capital Gains Tax.
  • No Securities Transfer Tax on purchases.​

As the JSE is not qualified to offer investors financial advice, the exchange has partnered with an array of stockbrokers who can provide tailored financial advice for each investor’s investment journey.  To find out more, please visit: https://www.jse.co.za/taxfree

ENDS

ABOUT THE JSE 
The Johannesburg Stock Exchange is based in South Africa where it has operated as a market place for the trading of financial products for 130 years. It connects buyers and sellers i​n equity, derivative and debt markets. The JSE is one of the top 20 exchanges in the world in terms of market capitalisation and is a member of the World Federation of Exchanges (WFE). The JSE offers a fully electronic, efficient, secure market with world class regulation, trading and clearing systems, settlement assurance and risk management. 

Issued by:
H+K Strategies South Africa 
Mildred Thabane
Tel: +27 11 463 2198 

JSE contact: 
Pheliswa Mayekiso ​
Media and Internal Communications Manager
Tel: +27 11 520 7495