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Many South African brokers now offer fractional shares, allowing you to invest small amounts in expensive stocks. ETFs are particularly accessible for beginners, with some requiring minimum investments of just R100. The key is starting early rather than waiting for large sums. Dollar-cost averaging works well with smaller monthly contributions.

True diversification means not putting all your eggs in one basket. Consider mixing JSE stocks with international markets, bonds with equities, and different sectors like technology, healthcare, and resources. REITs can add property exposure without direct ownership. Don't forget about diversifying across time - regular investing reduces timing risk.

In 2025, individuals have an annual CGT exemption of R40,000. Beyond this, 40% of gains are taxable at your marginal rate. Tax-free savings accounts (TFSA) allow R36,000 annual contributions with no tax on growth. Dividends from SA companies often come with dividend tax already deducted. International investments may have withholding taxes that can sometimes be claimed back.

A common rule suggests subtracting your age from 100 to determine your equity percentage, but this isn't universal. Consider your emergency fund, job security, and comfort with volatility. Younger investors can typically handle more risk due to longer recovery periods. If market drops keep you awake at night, you might be taking too much risk regardless of your age.

Set calendar reminders for quarterly reviews but don't feel compelled to change everything each time. Rebalancing becomes necessary when your asset allocation significantly shifts from your intended mix. This forces you to sell high-performing assets and buy underperforming ones - essentially buying low and selling high. Consider tax implications in taxable accounts.

Volatility describes how much an investment's price fluctuates, while risk encompasses the probability of losing money permanently. A volatile stock might swing wildly but trend upward over time. Real risk comes from factors like business failure, inflation eroding purchasing power, or needing to sell at the wrong time. Understanding this difference helps you stay calm during market turbulence.

Start by writing down specific financial goals with target dates - retirement, children's education, property purchase. Your timeline determines how much risk you can take and which investments make sense. A 30-year retirement goal can handle more stock market volatility than a 3-year house deposit fund. Review and adjust your strategy as life circumstances change, but avoid constant tinkering.

Index funds and ETFs offer broad market exposure without requiring you to research individual companies. They're cost-effective and eliminate single-stock risk. Individual stocks can be rewarding if you enjoy research and can handle higher risk. Many successful investors use a core-satellite approach: index funds as the foundation with individual stocks as smaller positions for growth potential.

Market downturns are normal and temporary - the JSE has recovered from every major decline in history. Having a written investment plan helps you remember why you're investing when emotions run high. Consider market drops as sales on quality investments. Continuing to invest during downturns through dollar-cost averaging can actually improve long-term returns by buying more shares at lower prices.