South Africa - Personal
Tax-Free Investment
Make your savings work harder by investing tax free. With the Coronation Tax-Free Investment, you don’t pay tax on your investment returns – both while you’re invested and when your investment pays out. The taxes you save remain invested to grow, which can make an enormous difference over the long term.
Tax free means:
- No tax on interest or other income
- No dividend tax
- No capital gains tax
At Coronation, you will also not pay any initial fees or annual administration fees. The only fees payable are the annual management fees applicable to the underlying fund/s you choose to invest in.
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INVESTMENT OPTIONS
You can choose to invest in a range of Coronation funds, tax free. You can also withdraw money and switch between funds.
Choose one or more of the following funds:
- Coronation Balanced Defensive
- Coronation Balanced Plus
- Coronation Bond
- Coronation Capital Plus
- Coronation Defensive Income (previously Jibar Plus)
- Coronation Equity
- Coronation Financial
- Coronation Global Capital Plus [ZAR] Feeder
- Coronation Global Emerging Markets Flexible [ZAR]
- Coronation Global Equity Select [ZAR] Feeder
- Coronation Global Managed [ZAR] Feeder
- Coronation Global Opportunities Equity [ZAR] Feeder
- Coronation Global Optimum Growth [ZAR] Feeder
- Coronation Global Strategic USD Income [ZAR] Feeder
- Coronation Industrial
- Coronation Market Plus
- Coronation Money Market
- Coronation Property Equity
- Coronation Resources
- Coronation SA Equity
- Coronation Smaller Companies
- Coronation Strategic Income
- Coronation Top 20
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Minimum Investment Amount |
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TAX-FREE ALLOWANCE
You can invest up to R36 000 tax free every tax year (March 1st to end-February of the next year) and up to R500 000 over your lifetime. These limits are legally set and apply across all tax-free products you invest in (not per product). If you exceed them, you will pay a penalty tax of 40% on the additional amount invested.
In addition, all amounts you invest will count towards your annual and lifetime limits regardless of any withdrawals you make - you cannot 'replace' the money you withdraw with a new investment. For example, if you invest R36 000 this tax year and then withdrew some or all of your savings, any further investment during the tax year will be taxed at 40%.
IT'S EASY TO TRANSFER
You can transfer your tax-free investment from a bank or another investment manager free of charge at any time. For example, if your tax-free investment is currently saved in a bank account and you would prefer to expose your investment to the growth potential offered by unit trusts, you can transfer it to Coronation or any other investment manager.
If you would like to move your tax-free investment to Coronation, all you need to do is complete this form and then instruct your existing investment manager or bank to transfer the investment to Coronation.
SAVING FOR YOUR CHILDREN
Children can also receive the benefits of tax-free investing. By opening a tax-free investment on behalf of your child, you unlock the full power of compounding on their long-term savings.
The principle of compounding is simple - the returns earned on an investment also start earning returns. What this means is that the tax-free dividends and interest earned in the Coronation Tax-Free Investment are immediately put to work by being automatically re-invested. This results in your child's investment growing at an ever-increasing rate, year after year. Over the long term, this can make an enormous difference.
Each child has a personal tax-free allowance of their own. Please note that a bank account in your child's name will be required for all withdrawal payments from his or her Coronation Tax-Free Investment. Your savings on behalf of your children may be subject to donations tax, should it exceed the annual allowance.
All information and opinions provided are of a general nature and are not intended to address the circumstances of any particular individual or entity. As a result thereof, there may be limitations as to the appropriateness of any information given. It is therefore recommended that the reader first obtain the appropriate legal, tax, investment or other professional advice and formulate an appropriate investment strategy that would suit the risk profile of the reader prior to acting upon information. Neither Coronation Fund Managers Limited, Coronation Management Company (RF) (Pty) Ltd nor any other subsidiary of Coronation Fund Managers Limited (collectively “Coronation”) is acting, purporting to act and nor is it authorised to act in any way as an adviser. Coronation endeavours to provide accurate and timely information but we make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of the information and opinions. Coronation does not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. Unit trusts should be considered a medium- to long-term investment. The value of units may go down as well as up, and is therefore not guaranteed. Past performance is not necessarily an indication of future performance. Unit trusts are allowed to engage in scrip lending and borrowing. Performance is calculated by Coronation for a lump sum investment with income distributions reinvested. All underlying price and distribution data is sourced from Morningstar. Performance figures are quoted after the deduction of all costs (including manager fees and trading costs) incurred within the fund. Note that individual investor performance may differ as a result of the actual investment date, the date of reinvestment of distributions and dividend withholding tax, where applicable. Where foreign securities are included in a fund it may be exposed to macroeconomic, settlement, political, tax, reporting or illiquidity risk factors that may be different to similar investments in the South African markets. Fluctuations or movements in exchange rates may cause the value of underlying investments to go up or down. The Coronation Money Market fund is not a bank deposit account. The fund has a constant price, and the total return is made up of interest received and any gain or loss made on any particular instrument, in most cases the return will merely have the effect of increasing or decreasing the daily yield, but in the case of abnormal losses it can have the effect of reducing the capital value of the portfolio. Excessive withdrawals could place the fund under liquidity pressures, in such circumstances a process of ring-fencing of redemption instructions and managed pay-outs over time may be followed. A fund of funds invests in collective investment schemes that levy their own fees and charges, which could result in a higher fee structure for this fund. A feeder fund invests in a single fund of a collective investment scheme, which levies its own charges and could result in a higher fee structure for the feeder fund. Coronation Management Company (RF) (Pty) Ltd is a Collective Investment Schemes Manager approved by the Financial Sector Conduct Authority in terms of the Collective Investment Schemes Control Act. Unit trusts are traded at ruling prices set on every day trading. Forward pricing is used. For Domestic Unit Trust Funds and Tax Free Investments, including rand-denominated International Unit Trust Funds, fund valuations take place at approximately 15h00 each business day, except at month end when the valuation is performed at approximately 17h00 (JSE market close). For these Funds, instructions must reach the Management Company before 14h00 (12h00 for the Money Market Fund) to ensure same day value. For Offshore Unit Trust Funds that are denominated in a foreign currency, fund valuations take place at approximately 17h00 each business day (Irish Time) and instructions must reach the Management Company before 12h00 (SA Time) to ensure the value of the same business day. For Retirement Products, fund valuations take place at approximately 15h00 each business day, except at month end when valuation is performed at approximately 17h00 (JSE market close). For these Products, instructions must reach the Management Company before 14h00 to ensure the value of the next business day. Additional information such as fund prices, brochures, application forms and a schedule of fund fees and charges is available on our website, www.coronation.com. Coronation Fund Managers Limited is a Full member of the Association for Savings & Investment SA (ASISA). Coronation Asset Management (Pty) Ltd (FSP 548), Coronation Investment Management International (Pty) Ltd (FSP 45646) and Coronation Alternative Investment Managers (Pty) Ltd (FSP 49893) are authorised financial services providers. Coronation Life Assurance Company Limited is a licenced insurer under the Insurance Act, No.18 of 2017.