The ins and outs of FNB Shares Zero
Investing for less means reducing investment costs so that maximum exposure to market growth is obtained. As long-term investors, we are looking to consistently outperform the increased cost of living and build up a nest egg over our working lives that will sustain us into retirement. The more we invest, the larger the potential returns. The longer we invest, the more compounding can take its magical effect.
Any reduction in fees means a higher capital balance to invest. Over the long term, a reduction in fees add up substantially and can accelerate achieving long-term goals. That is why FNB has introduced the Shares Zero Account so that more of your wealth ends up working for you.
What is the FNB Shares Zero Account?
The Shares Zero Account has been launched by FNB to eliminate unnecessary investment fees. The account allows investors to invest in the JSE Top 40 shares, exchange-traded funds (ETFs) and exchange-traded notes (ETNs) with no monthly account fee or minimum balance required.
When investing in FNB or Ashburton ETFs and ETNs clients will pay no brokerage fees either, while non-FNB assets will be capped at 0.25%, meaning less fees and more capital to invest. As part of the ETN range, you also get exposure to the biggest global companies with FNB ETNs that track Alphabet, Amazon, Apple, Coca-Cola, Facebook, McDonald's, Netflix, Tesla and Visa just to name a few.
How does this benefit me as an investor?
The higher the capital base, the higher the potential returns. As an investor, you have more funds to invest in the market to obtain equity exposure. Money that previously went towards paying fees can now be invested into the market and compound over the long term, potentially accelerating investment goals.
Investing in the JSE Top 40 shares means obtaining exposure to the 40 biggest companies listed on the JSE by market capitalisation. This means that these companies have strong management, a proven track record and returns in a combination of dividend income and capital appreciation. The JSE Top 40 are known as the blue-chip stocks and should form the foundation of an investment portfolio seeking equity exposure. Equity exposure is essential when looking to outperform the increased cost of living and grow wealth over the long term. Through the FNB Shares Zero Account, shares in these companies can be bought and sold and, because of no monthly account fees, more shares can now be acquired.
Investing in ETFs can be a fantastic way to begin an investment journey, due to obtaining multiple asset exposure through a single investment. ETFs, however, can also be used by the experienced investor looking to further diversify overall portfolio risk and obtain exposure to a basket of assets tracking an index, sector or company size.
ETNs are an excellent instrument to obtain geographical diversification without having to physically take rands offshore. ETNs allow South African investors to obtain exposure to the largest international listed companies, through a locally listed instrument and investors can choose whether to invest in rands or foreign currency. Due to no monthly account fees as well as no brokerage fees when buying FNB or Ashburton ETFs and ETNs, more wealth can be invested in these investment vehicles, allowing for higher potential returns and higher probabilities of achieving investment goals.
In closing
The FNB Shares Zero Account makes investing simple and cost-effective. There is a wide selection of assets to suit all goals and risk profiles. Although small on the surface, over the long-term fee saving adds up as it means more capital is invested, meaning your money is working harder for you. Open your FNB Shares Zero Account today and take advantage of this great fee-saving initiative from FNB and accelerate your long-term portfolio growth.
