SmartRand Frequently Asked Questions
How does the SmartRand Investment Advice Process work?
The SmartRand investment advice process consists of two online phases that provides you with quality, single goal investment advice.
We will ask you to provide some personal information while completing the steps. We also added educational learn more sections for you to read and also to help you understand the questions asked.
A specific investment fund is recommended for you, matching your personal profile. The final step is the automated opening of your personal investment account at Ashburton Investments.
Your Final Step: Open your investment account
After the completion of both SmartRand phases the following will happen:
- Opening of your personal investment account at Ashburton Investments.
- You will receive all the information regarding your investment advice via email.
- Lastly, provide your FICA details to Ashburton Investments.
Why should I complete the SmartRand Investment Advice Process?
- The SmartRand investment advice process is online and interactive
- Our advice is tailored to your unique risk profile and delivered in a seamless online process
- It guides you to choose the right investment fund for you, matching your personal profile
- The process makes sure you understand the reason for each choice you make
What is my recommended investment fund based on?
- The minority of our fund managers can match or do better than the investment indexes. We therefore take the risk of trying to pick the winner in 3, 5 or 10 years away by using the index as the building block of our solutions.
- We aim to drive down costs wherever we can and to give the benefit of this to the investor. We are completely open about and transparent about our cost structure and we offer compelling, low costs.
- The investments were designed between SmartRand, Ashburton and RMB Asset Management with the principles of Indexing and low cost paramount.
What investment solutions does SmartRand offer?
- CPI – Ashburton Money Market (Click here for this fund fact sheet)
- CPI + 2.0% – RMB Cautious Fusion Fund (Click here for this fund fact sheet)
- CPI + 3.5% – RMB Moderate Fusion Fund (Click here for this fund fact sheet)
- CPI + 5.0% – RMB Growth Fusion Fund (Click here for this fund fact sheet)
- CPI + x% – Ashburton SA Equity Fund (Click here for this fund fact sheet)
Why do I need to read the SmartRand ‘learn more’ sections?
- You will know about all the factors that influences your investment.
- You’ll be able to answer all the questions with confidence.
- Therefore, we’ll be able to give you the best possible investment plan tailored to your needs.
What can I expect when I invest through SmartRand?
When you invest, you accept some risk in exchange for potential growth so that you end up with more money in the future.
What is the difference between gambling, speculation, saving and investing?
SmartRand provides personalised investment advice online tailored to your financial and personal needs. During the SmartRand advice process, a specific investment fund will be recommended based on your risk profile.
How does SmartRand assess my risk profile?
Your risk tolerance
The level of financial risk you prefer to take which you will feel emotionally comfortable with.
Your risk required
The level of risk required to achieve your investment goals. It is calculated by taking your goals, time horizon and available resources into account.
Your risk capacity
The level of risk you can afford to take, i.e. the extent to which your future can be less favourable than predicted without derailing your plans.
Why do I need to complete the 12 point risk tolerance questionnaire?
A person’s answer to a specific question may be influenced by a particular experience they have had, or their mood at the time. Or they may have misinterpreted the question. Or they may simply have made a mistake.
Statistical studies are used to determine the number of questions needed to provide a scientifically acceptable level of accuracy in an assessment. The accuracy of a questionnaire is a function, in part, of the square of the number of questions. Because of the nature of risk tolerance, more than just a few questions are needed. Statistical studies of this questionnaire show that its accuracy exceeds internationally accepted standards.
What if the situation in the question does not pertain to me?
There are a number of questions that ask you to assume or imagine you are in a certain situation. These questions are designed to gain a picture of what you would do in such circumstances, regardless of whether you have ever been in them or are ever likely to be in them. Please answer as best you can on the available information.
What if a question asks about a situation where, in real life, I would need more information?
Some questions require you to make a decision based on limited information. While, in real life, you may wish to obtain more information before making your final decision, these questions are designed to gain an idea of what you would do given the limited information. Please answer as best as you can on the available information.
What if none of the choices in a multiple-choice question is my preferred answer?
Some questions give you a limited choice of responses and may not include your preferred answer. These are designed to obtain a picture of what you would do given the choices available.
What happens if I withdraw my investment earlier?
1. Short term fluctuation might work against you if you withdraw your money earlier.
2. You can land in a position where you have to liquidate your investment.
3. You might not get the optimal growth from the investment.
What is risk capacity?
Your ability to sustain a negative financial event without it derailing your investment goals.
SmartRand uses proven investment principles to provide personalised investment advice online. Theo Vorster and Warren Ingram from Galileo Capital power SmartRand.
The established personal investment firm, Galileo Capital, is the financial advice company responsible for the investment advice provided by SmartRand. Galileo Capital is a registered financial services provider (FSP), approved and regulated by the Financial Services Board (FSB). (FSB license number 21239.)