• This fund is for investors wanting capital stability from investments, as well as income which will be provided to clients through short-term and long-term local and offshore securities
• Unit trust investments are liquid funds and they permit unlimited withdrawals to be made, regardless of the investment horizon initially anticipated.
• The Portfolio adheres to the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) as interpreted by the Shari'ah Supervisory Board.
• The fund offers investors access to local and international asset classes including equity, liquid assets and non-equity securities, such as sukuks (Islamic bonds) and equity conduits with a low to moderate risk profile
• The minimum investment amounts are R10 000 lump sum or R500/month.
• Unit trust investments are a cost effective tool to save for a home, car or education.
• They are open ended with no fixed period of investment.
• This fund complies with retirement fund legislation and is suitable as a stand-alone retirement investment
• Entities can use this as a medium to long term investment

• Upfront fee - maximum 3.45% including VAT (Once off fee)
• Annual Advisor Fee – maximum 1.15% including VAT
• Beneficiaries cannot be added
• A maximum of R46 000 contribution per tax year and a R500 000 lifetime contribution limit applies. Limits are subjected to amendments by Legislation from time to time

Click here to download Shariah Certificate

The following documentation is required to apply:

Adults

• South African bar-coded Identity Document/Smart ID
• Proof of address not older than 3 months, for the verification of your residential address

Minor

• Birth Certificate of minor or Smart ID for young adults age 16 and over
• South African bar-coded Identity Document/Smart ID and proof of address not older than 3 months of parent or guardian, for the verification of their residential address

To view your statement or invest with Old Mutual 24/7, clicking here 

Click here to view all acceptable forms of proof of address required to open an account

With these on hand, you can then contact your nearest branch to apply, or complete the Contact Form on this page for our Sales Consultant to call you

1. What is a Tax-Free Investment?

A Tax-Free Investment is a savings or investment account that helps you grow your money without paying tax on the returns. This means you do not pay income tax, dividends tax or capital gains tax on the growth inside the investment, as long as you stay within the SARS rules.  

It can be a simple and flexible way to start building long-term wealth.

2. How much can I invest tax-free?

You can invest up to R46 000 per tax year into Tax-Free Investments, with a lifetime limit of R500 000 per person. These limits apply to you as an individual, even if you have more than one Tax-Free Investment account.  

It is important not to exceed these limits, because SARS may charge a 40% tax penalty on the amount above the allowed limit.  

3. Can I withdraw money from my Tax-Free Investment?

Yes, you can access your money if you need to. However, withdrawals do not give you extra contribution room again.

For example, if you invest your full yearly allowance and then withdraw some of the money, you cannot simply replace that withdrawn amount in the same tax year without it counting as a new contribution. SARS treats reinvested withdrawn money as a new contribution, which could cause you to exceed your limit.  

4. Can I invest in a Shari’ah-compliant Tax-Free Investment?

Yes! Your Tax-Free Investment can be underpinned by a Shari’ah-compliant unit trust, such as the Old Mutual Albaraka Shari’ah fund range.

This means you can enjoy the benefits of tax-free investment growth while investing in a fund that is managed in line with Shari’ah principles. An Al Baraka Wealth advisor can help you choose an option that suits your goals and investment timeframe.

5. Why should I speak to a financial advisor before investing?

Although Tax-Free Investments are easy to understand, choosing the right investment still matters. An advisor can help you decide how much to invest, how long to stay invested, what level of risk is suitable, and how to avoid exceeding the SARS contribution limits.

Speak to an Albaraka Wealth advisor to find out how a Tax-Free Investment can form part of your personal wealth plan.