JSE plans TFSA marketing campaign

Story Highlights

• JSE marketing campaign
• tax-free savings account
• TFSA

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Staff writer. 13 March 2015

The JSE is preparing to launch a major marketing campaign, including roadshows, to create awareness of the tax-free savings accounts that stockbrokers are offering, says marketing and retail development head Mpho Ledwaba. The exchange sees TFSAs as a way of boosting retail participation on the market, which is dominated by large institutional investors.

“We see the TFSA as a credible and attractive vehicle to widen the individual investor base and attract more investors to the stock market,” he says. “It offers a great entry point to first-time investors who can start investing right now with small amounts while learning about the ETF products available as well as actual equity investing.” Exchange traded funds (ETFs) hold a portfolio of underlying assets which can include shares, bonds, commodities and other instruments both with South African and foreign exposure. About 40 ETFs are currently listed. Regulations currently do not allow investment into individual stocks, allow investments into ETFs which are perceived as lower risk.

“We think that’s particularly important in SA given the low investment culture and we’re working closely with stockbrokers to promote it.”

The JSE is aligning the campaign, which is launching in the next few weeks, with the activities of the brokers, which are offering the accounts individually, Ledwaba says. The main offering on the stock market are ETFs, which are allowed in the TFSA, though direct equity investments are not.

Programmes in the pipeline include learning modules and games to help people understand the world of investing.