Effortless Investing: Investec’s Clarity Platform Boosts Access to Global Markets
In the contemporary landscape, the proliferation of social media and influencers, coupled with advancements in AI and access to financial data, offers investors an extensive array of information.
Yet, it’s not merely this access that is driving the increase in retail investing.
Tinus Rautenbach, head of Clarity by Investec, asserts that the primary contributors to this movement are accessibility and simplicity.
“The advancement of digital technology has made investing and trading far more convenient,” he observes. “Individuals can now access their market or investment accounts at any time and from anywhere through a mobile application.”
Rautenbach points out that the “cost of acquiring a vast amount of market and share data has essentially been minimized to zero.”
It’s imperative not to presume that all accessible information is accurate or trustworthy.
Now more than ever, it’s vital to depend on credible data.
This is particularly pertinent given the escalating hype and ‘noise’ prevalent on platforms like Reddit, TikTok, Facebook, and Instagram.
It’s clear that influencers often stimulate interest and trading activities, but establishing a direct link can be tricky.
Rautenbach notes a noticeable increase in activity on the Clarity platform regarding Sasol since the outbreak of the Middle Eastern conflict.
“Is this due to influencers talking about oil, or are people reacting to changes in oil prices, prompting them to trade Sasol?”
While AI is reshaping the landscape, Rautenbach indicates that it can greatly assist individuals embarking on their financial services journey, especially in clarifying products and comparing options.
“Instead of asking, ‘Should I purchase Apple today?’ you might inquire, ‘How might fluctuations in interest rates influence my investment in Apple?’ or ‘What caused Apple’s share price to fall by 10% on Friday?’”
Investec’s Clarity platform
Clarity by Investec features a broad selection of investment products, including listed exchange-traded funds (ETFs) that provide opportunities in both local and global markets.
Investors can examine the options accessible through the platform.
These investment products act as effective entry points to the market, according to Rautenbach.
During the onboarding process, investors answer questions to assess their experience level. Access to more advanced products, such as contracts for difference (CFDs), is contingent upon this evaluation. CFDs allow traders to speculate on the price movements of underlying assets without ownership, leading to potential gains or losses.
The clear and transparent guidance provided on the platform, joined with intuitive tools, real-time market access, and an efficient trading experience, empowers users to make informed decisions with confidence.
At the core of Clarity’s mission is the principle of simplicity.
Rautenbach emphasizes that the platform is designed for everyone, from beginners to experienced traders.
“We maintain a user-friendly interface that is intuitive and straightforward, yet not overly simplistic. Understanding what you’re purchasing is essential.”
He highlights the importance of first addressing fundamental financial needs—such as savings and an emergency fund—prior to delving into long-term investments and setting various goals.
“You’ll likely strive for a return that surpasses CPI [inflation] by approximately 5%, which aligns with a general equity unit trust target,” he elaborates.
“This can be accomplished in various ways: by creating a diversified portfolio or purchasing ETFs, but the key lies in buying and holding for the long term.”
Investing vs trading
Alongside diversification, conducting in-depth research on your investments cultivates confidence over time.
It’s also vital to comprehend the costs associated with the instruments utilized in expressing your investment perspective, as these affect returns, according to Rautenbach.
Clarity’s integrated platform promotes seamless trading, saving, and investing all in one place.
Rautenbach differentiates between investing and trading, indicating that success in both domains often commences with having a strategy.
“With trading, it’s crucial to practice discipline by comprehending the rationale behind your trades.”
You should also clarify your risk parameters.
Rautenbach outlines three essential considerations for trading:
- Acknowledge when you’re wrong. “Implementing tools such as stop-loss orders is crucial—can the platform you’re using provide automated stop-loss features?”
- Recognize when you’re right. “When will you take profits?” he asks, as this indicates that your investment thesis has been validated. Automation should be in place here as well.
- Establish the percentage of your capital you’re willing to allocate to a trade or idea. “Proper trade sizing is essential.”
He underscores that both investing and trading involve risks, but with discipline and a well-crafted strategy, long-term success is achievable.
Click here to learn more about Clarity and commence trading.
Disclaimer:
Clarity by Investec is a service offering from Investec Bank Limited (registration number 1969/004763/06), an authorized Financial Services Provider (FSP 11750) and an Over-the-Counter Derivatives Provider, as well as a Registered Credit Provider (NCRCP 9), and a member of the JSE Limited. Investec Bank Limited adheres to the Code of Banking Practice. Complaints can be directed to the National Financial Ombud Scheme South Africa, which independently addresses grievances against South African financial institutions. You can request copies of the Code and the Ombudsman’s contact details, or visit Investec COBP.
Presented by Clarity by Investec.
Moneyweb does not endorse any products or services advertised in sponsored articles on our platform.