It's a government initiative that allows your investment returns to grow completely free of any local tax - and to remain tax-free even when you withdraw.
This means no local tax on:
Assumptions:
R36 000 invested per year from birth into a taxable unit trust and a tax-free investment, respectively, until R500 000 has been invested. Investment then grows without any withdrawals until age 65.
End values assume the entire amount is invested in the same underlying portfolio, Coronation Market Plus, for the duration of the investment, returning 6% per annum in real terms (historically Coronation Market Plus provided 8.9% real p.a. since inception, as at 31 December 2024), 5% inflation and marginal tax split between income, dividends and capital growth based on historic average for Market Plus.
To help investors make the most of their Coronation Tax-Free Investment, here’s a summary of its benefits and limitations.
Before you open a tax-free investment, you must decide which unit trust fund best suits your needs. To get the maximum benefit, our long-term equity-focused funds, Coronation Market Plus and Coronation Global Optimum Growth Feeder are optimal choices.
A multi-asset fund invested in both South African and international assets. Suitable for investors seeking to maximise long-term growth.
View full details of this fund
Invest in this fundAn aggressive multi-asset fund that can invest across all asset classes and regions around the world in a totally flexible manner.
View full details of this fund
Invest in this fundIf you would like to consider other fund options and learn more about the benefits of a tax-free investment, click here.
At Coronation we know the importance of making the right investment choice; we also know the value of seeking independent professional advice. If you are at all uncertain as to which is the right investment for you, we recommend that you talk to your financial adviser.
Learn more
Our Market Plus Fund and Global Optimum Growth Feeder funds are popular choices as they offer access to Coronation’s best investment view across asset classes. Alternatively, we have many other funds that may better suit your needs.
A Coronation Tax-Free Investment has no upfront or switching* fees.
Coronation only charges an annual management fee, depending on your chosen fund. For example, Coronation Market Plus charges an annual fee of 1.25% on your investment balance.
Each funds’ fees can be found on their respective fact sheets:
Click here to read more about the fees
*While this is the ordinary course of business, Coronation retains the right to apply switching fees or exit penalties under limited circumstances.
If you have not yet contributed the maximum of R36 000 to your Coronation Tax-Free Investment for this tax year, you can add to your investment by logging into your account.
No, but we highly recommend that you remain invested for the long term to get the maximum benefit from both our investment approach and the power of compounding.
There are no limits to what you can withdraw from your total investment value (calculated daily). While you can access your tax-free investment at any time, it’s well worth resisting the temptation to withdraw to maximise the time your investment has to benefit from the power of compounding.
Furthermore, 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 invested R36 000 in any particular tax year and then withdrew some or all of your savings, any further investment during the tax year will be taxed.
