Risk Profiles

At Beanstalk we guide you to an appropriate risk profile based on your age, reason for saving, product choice and term (the length of time you expect to be saving for).

We have classified all available funds on this website as either Aggressive (meaning it carries more risk but offers higher potential returns), Moderate (where we believe the fund strikes a balance between risk and security) and Conservative (meaning the risks are likely to be lower with that fund, but so are the possible returns).

Aggressive Risk Funds

Beanstalk's aggressive risk fund selection is best defined as funds we believe might offer you the best possible return on your money. These funds are however more volatile which means that they have a greater risk associated with them.

These figures reflect what R100,000 invested during the past 10 years could have been worth today.

  Average Annual Return Average Return Scenario Maximum Drawdown (Loss) Worst Scenario
Foord Equity Fund B2 * 13.11% R342,685 -8.93% R91,075
Nedgroup Investments Global Flexible Feeder Fund B2 * 14.29% R380,145 -11.41% R88,591
Nedgroup Investments Global Equity Feeder Fund B2 * 18.00% R523,517 -14.61% R85,386
Allan Gray Equity Fund A 10.32% R267,019 -24.63% R75,366
Coronation Global Emerging Markets Flexible [ZAR] Fund A * 13.36% R350,542 -20.84% R79,164
Coronation Top 20 Fund A 12.09% R313,112 -29.44% R70,558
Investec Value Fund H 7.60% R207,953 -36.69% R63,311
Investec Equity Fund H 9.68% R251,874 -36.60% R63,401
Investec Equity Fund A 9.04% R237,622 -36.81% R63,185
Coronation Global Opportunities Equity [ZAR] Feeder Fund A 10.81% R279,044 -38.63% R61,373
Investec Property Equity Fund H 14.73% R395,085 -26.68% R73,324
Nedgroup Investments Global Equity Feeder Fund A 9.04% R237,650 -39.45% R60,552
Average across all aggressive funds 11.84% R315,521 -27.06% R72,940
Best Performer
Worst Performer

* Funds marked with an asterix do not yet have 10 year performance figures and so the performance figures available for the longest duration are shown. Data source: Morningstar

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Moderate Risk Funds

Beanstalk's moderate risk fund selection is best defined as those funds having a balance between the risk of losing money and the average long term gain that the fund has yielded.

These figures reflect what R100,000 invested during the past 10 years could have been worth today.

  Average Annual Return Average Return Scenario Maximum Drawdown (Loss) Worst Scenario
Coronation Balanced Plus Fund A 10.63% R274,700 -20.25% R79,749
Coronation Global Managed [ZAR] Feeder Fund A * 17.00% R480,703 -12.10% R87,903
Coronation Optimum Growth Fund A 11.07% R285,735 -31.65% R68,354
Foord Balanced Fund R 9.67% R251,700 -19.01% R80,987
Prudential Inflation Plus Fund A 9.92% R257,496 -8.62% R91,385
Coronation Balanced Plus Fund P * 13.27% R347,689 -5.33% R94,673
Coronation Global Managed [ZAR] Feeder Fund P * 13.76% R362,997 -11.93% R88,073
Foord Balanced Fund B2 * 11.55% R298,238 -6.30% R93,701
Prudential Inflation Plus Fund X * 10.80% R278,958 -3.62% R96,384
Allan Gray Balanced Fund A 10.43% R269,594 -10.21% R89,795
Investec Managed Fund H 9.71% R252,688 -23.27% R76,729
Coronation Capital Plus Fund 9.05% R237,766 -8.35% R91,651
Coronation Global Capital Plus [ZAR] Feeder Fund A * 12.74% R331,762 -12.93% R87,065
Foord Flexible Fund of Funds B2 * 15.50% R422,497 -7.81% R92,195
Investec Opportunity Fund H 9.98% R258,929 -17.89% R82,110
Investec Opportunity Fund A 9.43% R246,164 -18.17% R81,830
Investec Opportunity Fund E 10.49% R271,158 -18.33% R81,667
Average across all moderate funds 11.47% R301,693 -13.87% R86,132
Best Performer
Worst Performer

* Funds marked with an asterix do not yet have 10 year performance figures and so the performance figures available for the longest duration are shown. Data source: Morningstar

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Conservative Risk Funds

Beanstalk's conservative risk selection includes those funds we believe are the safest to invest in relative to the moderate and aggressive fund selections. They will generally offer a better return than cash, but this will be lower than the returns that you may earn if you select either a moderate or aggressive fund. On the other hand, these funds are pretty safe and you shouldn't suffer major losses if you invest in them.

These figures reflect what R100,000 invested during the past 10 years could have been worth today.

  Average Annual Return Average Return Scenario Maximum Drawdown (Loss) Worst Scenario
Coronation Balanced Defensive Fund A 10.17% R263,337 -2.64% R76,488
Coronation Balanced Defensive Fund P * 8.72% R230,691 -2.39% R78,535
Allan Gray Stable Fund A 9.25% R242,269 -3.30% R71,466
Allan Gray Bond Fund A 8.98% R236,354 -6.17% R52,898
Allan Gray Money Market Fund 7.41% R204,354 0.00% NaN
Investec Cautious Managed Fund H 8.89% R234,416 -8.26% R42,217
Investec Diversified Income Fund H * 8.49% R225,821 -1.85% R82,991
Allan Gray Optimal Fund A 7.47% R205,601 -2.89% R74,560
Coronation Strategic Income Fund 9.07% R238,206 -1.06% R89,919
Average across all conservative funds 8.72% R231,228 -3.17% R96,826
Best Performer
Worst Performer

* Funds marked with an asterix do not yet have 10 year performance figures and so the performance figures available for the longest duration are shown. Data source: Morningstar

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Offshore Funds

Beanstalk's offshore selection provides direct access to both Rand and non-Rand denominated funds.

These figures reflect what R100,000 invested during the past 10 years could have been worth today.

  Average Annual Return Average Return Scenario Maximum Drawdown (Loss) Worst Scenario
Allan Gray - Orbis Global Optimal Fund of Funds * 10.79% R278,643 -14.29% R21,385
Allan Gray - Orbis Global Equity Feeder Fund 13.07% R341,466 -30.36% R2,683
Allan Gray - Orbis Global Fund of Funds 12.05% R312,094 -15.72% R18,082
Average across all offshore funds 11.97% R310,734 -20.12% R79,875
Best Performer
Worst Performer

* Funds marked with an asterix do not yet have 10 year performance figures and so the performance figures available for the longest duration are shown. Data source: Morningstar

Understanding Average Annual Returns

The average annual return figures shown on this page are based on available data from the past 10 years for each of the funds offered by Beanstalk, and reflect the average return you could have earned during that period if you were invested in that fund continuously in each year.

Understanding Maximum Drawdown (Loss)

There is a lot of confusing terminology in the finance industry, and a lot of measurements and equations are used to determine and illustrate risk and return. We can't completely avoid some of this terminology but we will do our best to demystify it, and one of the key terms we would like to familiarise you with is called Maximum Drawdown.

Many funds suffered their worst losses in the market crash of 2008, and saw prolonged periods (up to 23 months) during which time they lost money. Maximum Drawdown represents the maximum percentage of one's investment that could be lost if a person bought a unit trust at the highest point of the biggest losing period for that fund, and sold it at the lowest value over the same period.

It is easy to identify the maximum drawdown when looking at a graph, so hopefully the illustration below will help you get to grips with this concept.

This graph shows the unit price for a unit trust over a 10 year period, and we have highlighted the maximum drawdown months when the fund lost the most amount of money, continuously. If you bought at the point marked "Bought" and sold at the point marked "Sold", you would have experienced the biggest loss possible over the entire 10 year period.

IMPORTANT NOTE even if you had bought at that worst possible time, your investment could have still been worth more than you started out with had you continued to hold onto the unit trust and not sold it at the bottom of the graph as shown.

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What's on this page?

Understanding risk profiles

?How do we categorise funds into risk profiles?

We have done all the homework for you and selected top performing unit trusts for different savings and investment needs. For a more comprehensive breakdown of how we pick funds, please visit our how we work page.

In summary, every fund selected for the Beanstalk site has been extensively researched and assigned a risk score based on numerous fund metrics - not just those shown on this page. This risk score determines which risk category the fund gets assigned to.

Glossary

Average Return Scenario

The average return scenario simply reflects what R100,000 invested at the start of the ten year period would be worth today, and is based on the average annual return percentage.

Worst Scenario

The worst scenario figures reflect the value of a R100,000 investment made at the peak of the maximum drawdown period and sold at the bottom of it. In other words, if you happened to have invested over the exact period when the fund lost the most money in the past 10 years, this worst scenario figure is what you would have been left with.