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Why investing in a Section 12J portfolio of funds makes Rands and sense

*This content is brought to you by METTA Capital

METTA Capital is South Africa’s first Section 12J portfolio of funds offering investors a high quality, minimal risk alternative investment opportunity.

In 2009 the South African government implemented a tax incentive for investors in such enterprises through a Venture Capital Company (VCC) regime. The VCC is intended to be a marketing vehicle that will attract retail investors. It has the benefit of bringing together small investors as well as concentrating investment expertise in favour of the small business sector. Section 12J is subject to the provisions of the Income Tax Act No. 58 of 1962 (the Act). Section 12J was introduced to cater for the deductions in respect of expenditure incurred in exchange for the issue of venture capital company shares.

Starting out with only a few Section 12J funds, there has been a significant growth of funds and there are already over 100 Section 12J funds in the SA market, making it very difficult to choose a winning investment option. METTA Capital’s portfolio of funds mitigates investor risk because it’s a collection of diverse Section 12J funds.

Read also: 45% tax break through smart investing

METTA Capital is designed for a balanced investment approach and is a diversified Section 12J portfolio of funds that avoids fund manager concentration. Because each fund is managed by a fund specialist, healthy competition exists between the fund managers. For investors, this means they won’t be caught or distracted by a single fund manager’s hype and promises.

METTA Capital offers a targeted entry point for investment into a new generation of entrepreneurs who will provide much-needed employment opportunities for South Africans and a revenue injection into the local economy.

There are multiple up-sides with this investment type as the passive investor gains risk mitigation and above-average returns, tax benefits, with the added benefit of the feel-good factor of investing in local businesses that are creating better futures and jobs.

The Numbers:

Minimum investment required                                  –         R500,000.00

Internal rate of return (IRR)                                      –         16%

Dividend Yield by 2019                                             –         5% – 8% per annum

First year dividend from a R1m investment              –         R58,665.00

Individual and Trust tax rebate                                 –          45%

Corporate tax rebate                                                –          28%

Time left to invest                                                     –          10 days

The METTA Capital portfolio of funds offer opened on 25 January 2018 and closes on 23 February 2018. Invest a minimum amount of R500,000.00 by EFT before then to take advantage of this exciting opportunity. Payment details are available on the METTA Capital website. Visit www.mettacapital.co.za for further details.

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