It is a known fact that life is unpredictable. Like gravity, what goes up will eventually come down. Take the stock exchange for example; share prices are in constant limbo and can move up or down at any point- the thrill behind investing.
Now imagine there was a way you could safeguard your investment from happenings like those at Steinhoff! Instead of losing your cash, your investment is protected …
Always a step ahead of the game when it comes to finding innovative solutions to keep their customers satisfied, our smart friends over at EasyEquities have partnered with InvestSure on a safety net for a selection of shares in their portfolio. What this essentially means is that investors are now able to insure over 100 JSE listed shares against a drop in share price due to management fraud. Awesome right?!
About 18 months ago, Carel was approached by Achim Klennert, group MD at Hannover Re to chat about an idea. A couple of young smart folks had won an innovation competition sponsored by Hannover, which marked the inception of Investsure. Using contacts from legend IT and UX teams at EasyEquities, they were able to develop and refine the full idea into what it currently is- Investsure.
“This innovation is going to grow the market of investors and is a way of helping those who may be nervous to give investing a shot. According to research, the best way to grow wealth is investing and we want more people to do so.” says Carel.
So how does it all work?
When you invest in one of these shares, you’ll have the option to add the insurance for a small additional fee of 0.56% of the value of your purchase. This covers you for a whole year. Say you’ve already invested in shares that you would now like to insure, you can do that in your account overview by selecting “Insure” on each of their setting cogs.
How do I know if my insured share is triggered?
You will receive an email which will allow you to recover some of the losses experienced by the share price. Claiming is as easy as selling your shares! Just sell the shares that are insured and you will qualify for up to 70% of the share price the day before the event hit the news. What did we say about being ahead of the game?
Still wondering why EasyEquities is South Africa’s number one cheapest, easiest online investment platform? Don’t just take my word for it, take a look at what some of the youusers think and some of the media coverage the launch received.
InvestSure launches on EasyEquities!
Also here’s what the staff had to say about the innovative idea,
“Creating access is what makes TeamEasy get up in the morning, and innovation is what fuels us (We’re a little obsessed). So when we met these clever SA entrepreneurs who had the same idea about making share investing even more accessible; we knew we could make magic together while keeping things cheap and easy –that’s how we roll. Most importantly, our yousers are chuffed about it, and that’s tops for us.”
Carly Barnes, Brand Manager EasyEquities
“Management honesty is one the most difficult risks to asses even for professional investors. If a hint of fraud hits the media, whether true or false, it can destroy the value of a company in a very short space of time. We hope that this product can improve the perception of risk in investing in equities, attracting more first-time investors to the JSE, as well as to protect all people’s savings, especially retirement savings.”
Mbulelo Mpofana, co-founder of InvestSure Technologies
“The greatest asset in creating wealth is share investment and so we need everyone to participate. We need every South African to have the confidence to go and buy their first share. If it is that they are distrustful of the management of companies for whatever reasons, it’s not an indictment of the management team it’s the fact that the individual is incapable of assessing whether or not fraud could be taking place and wants that eliminated from their risk profile and therefore wants it insured. It’s a bit like living in a community and saying ‘I’m not going to insure my car because I trust everyone that lives around me’. We live in a world where we need insurance in everything we do.”
Charles Savage, CEO EasyEquities
Again a massive congratulations to #TeamEasy, wishing them all the best!
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