Investment Plan (Focussed)

I’ve achieved my dream with Max Investments by saving consistently towards my goal.

Save with the Max Focussed Investment Plan

The Max Investments savings solution offers payment flexibility and access to a wide range of underlying investment options, from as little as R450 a month. Invest in your choice of leading funds from various fund managers while enjoying possible tax benefits thanks to our choice of ‘tax wrappers’ – structures that could reduce your tax burden. The minimum investment term for the Focussed Investment Plan is 10 years.

The first step to getting the things you really want is the simplest of all... start with a monthly investment of just R450 in the MAX Focussed Investment Plan. A plan that offers flexibility and security.

What I need to know

  • Choice of premium options - With the Focussed Investment Plan (regular monthly premium) option you benefit from the reassurance of disciplined regular saving for a fixed term, from as little as R450 a month. But you can also get the best of both worlds by combining it with the Flexible Investment Plan where you can add lump sum or ad hoc payments when you can and for as long as you want. Alternatively you can add ad hoc payments to your Focussed Investment Plan during the term to boost your potential returns.

  • Your full premiums are invested from day one – In most cases with the Focussed Investment Plan all of your money is invested from day one, instead of costs and charges being taken off the initial investments. (Note that 100% allocation may not apply if certain external (non-Old Mutual) Unit Trust Funds are selected, or if payment method is by stop order.)
  • Extensive choice of leading funds - Investors can choose from an extensive list of leading funds conveniently categorised into Guaranteed, Defensive and Market Growth categories. Your financial adviser can assist with this selection (including ensuring Regulation 28 compliance – see Max Investments fund range).
  • Investing a regular monthly amount ensures discipline.
  • Automatic access to leading funds from a range of fund managers in South Africa.
  • The flexibility to switch between investment funds, as often and whenever you like, at no cost.
  • Consolidated reporting available on the performance of your investments through Old Mutual’s MyPortfolio online platform.
  • The more you invest, the lower your plan charges will become as the value of your investment grows.
  • Benefit from tax efficiency through personalised ‘tax wrapper’ structuring.
  • Flexibility to add or remove risk protection, as your individual circumstances change.
  • Skip up to 12 months worth of premiums over the premium payment term.

A Voluntary Premium Increase is when you increase your premiums voluntarily in order to increase the returns on your investment. Even small increases could make a substantial difference to your retirement over time.

Here are 20 reasons to increase your premiums whenever you can:

  • 1. Now is the best time to address the shortfall on your financial plan. Take the step to increase your regular investment amount today as you never know what might happen tomorrow.
  • 2. Increase your regular investment contribution to maximise the power of rand-cost averaging. It has been proven time and again that the key to investing is to ignore the ups and downs of the market and keep on investing via regular contributions, through the dips.
  • 3. Harness even more of the power of compound interest. A small change now can make a big difference to your future – this is why Einstein called it the 8th Wonder of the World.
  • 4. You can never save too much but it’s easy to save too little. The reality is that by far the most South Africans will not retire in the comfort they want to. Even a small increase in your savings can help your savings to soar.
  • 5. When it comes to investing, starting today can lead to significant benefits. Waiting three years would mean you would need to invest almost 10% extra in premiums to achieve the same end investment value. A delay of six years would require more than 20% extra*.
  • 6. If you contribute as little as R500 per month with inflation-matching annual premium increases, you could boost your future investment value by as much as 29% after 10 years**.
  • 7. For each R1 extra invested over 15 years, 50% of the compound interest earned may come in the last 5 years***. Your small step today will be a big leap for your future!
  • 8. South Africans need about 75% of their pre-retirement income to be able to live comfortably after retirement. By investing what you can afford from today, you can enjoy the benefits of compound interest and be on your way to achieving this.
  • 9. Benefit from the tax deductibility on your retirement annuity contributions and maximise your exposure to a tax-free investment build-up (income and capital growth).
  • 10. While there are millions of things you can buy in this world, just a little saving on non-essential expenses will free up a little extra money for a worthy investment. Pay yourself first – this first small step is all that is needed to help you on your way towards the rewarding experience of a greater future.
  • 11. You often get much better value from investing more into your existing investment plan than by starting a new plan with its own set of charges.
  • 12. Boost your future investment value with an affordable increase in your monthly investment contributions, rather than needing to meet the minimum required in a new investment plan.
  • 13. Relooking your regular investment amount gives you the opportunity to update your financial plan to take into account any changes in your personal circumstances.
  • 14. Reassess your fund allocation and ensure that future investment contributions are providing the best possible value for you. By investing in Old Mutual funds, a Max Investments customer will have saved almost five additional monthly premiums worth of charges over 15 years.
  • 15. Studies show that a shockingly small minority of South Africans are sufficiently prepared for retirement. By simply increasing your retirement contributions according to your financial ability, you can ensure you are on your way to retiring better.
  • 16. With money saved today, you can in the future: Retire comfortably; Educate your children; Always be prepared for a rainy day; Travel the world or decorate your home; Build up some capital to start your business.
  • 17. You can improve the future charges on your existing plan by investing more today, as your charges may decrease as your investment value grows.
  • 18. Enjoy peace of mind, knowing that your financial plan is up to date, and that you are on track to meet your goals.
  • 19. Protect your investment and your loved ones who may be reliant on it in the future, by checking that you are contributing the right amount and also by assessing whether you need to add Death or Disability Premium Protection to your Savings Plan.
  • 20. Consider additional investment into Old Mutual’s Smoothed Performance Fund which has an outstanding smoothing track record of 25 years of no negative returns and returns averaging 5% per year more than inflation.

*Calculated using a 10-year investment period and monthly premiums.
**Using inflation of 6% per annum.
***Assuming an investment return of 10% p.a.

Max Investments offers you access to an extensive range of leading investment funds (underlying investments) that enable you to create a portfolio that matches your objectives and appetite for risk. View the Max Investments fund range.

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