Question:
Is Satrix a good investment for my child's education, and how can I donate such an investment to a school, but still retain control over it?

Answer:
Satrix is an excellent way to enjoy the growth of the stock market without having to have specific experience in investing.

You should consider the investment a medium to long term project. So if your children are young then it would be worthwhile looking into it for their tertiary education. If you are investing with a short-term view (0-3 years) then the markets may not have grown enough (they could even be in negative territory) to yield a good return.

The second part of your question is unclear, but I will assume you mean that you want to donate money to a school but be in control of how they spend it. Well, you can stipulate how you want the money to be spent by setting up a trust in their name and nominating trustees who will follow your instructions, naturally you can be one of the trustees.

The other way is for you to tell them that the money is available and for them to submit proposals for the expenditure. If you want to sponsor a child in the school they can put forward candidates for your consideration.

If you want to set up a Satrix fund and donate the proceeds to the school then you will have to liquidate the portfolio when you want them to access the funds. You can?t have your cake and eat it; the shares are only useable when they are turned into cash.

There is no point in saying they can have the shares if they are in your name, as they would only be able to benefit in the event of a sale or your death (if you bequeath the portfolio to them).

You do not need to use a broker to buy SATRIX shares. You can log onto their website (www.satrix.co.za)and download the forms. There is a small administration fee charged when you buy the shares. Have a look at Standard Bank's website (www.standardbank.co.za) for some excellent advice on investing in shares online.