How South Africans invest in tax-free savings accounts
07 October 2015
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (Moneyweb)
Life insurance policies most popular during initial phase – study.
More than half of the tax-free savings accounts (TFSAs) opened in the first four months after the regulatory launch were life insurance policies, new research shows.
A study released by independent information forum Savetaxfree.co.za suggests more than 52% of the TFSAs opened by the end of June this year were life insurance policies followed by stockbroker accounts (23.9%) and collective investment schemes (23.5%). As most banks were hesitant to reveal information due to competitive concerns, they were excluded from the study. Volumes are displayed in the graph below.
Conducted in July and August this year, the study compiled data based on questionnaires completed by 18 institutions that offer these accounts. The authors estimate that the sample covers over 90% of the TFSA universe by assets. The study provides insight into some of the early trends related to this new market.
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This article first appeared on moneyweb.co.za.