General FAQs

How to invest with 10X Investments

Figuring out how to save for your future can be overwhelming. At 10X, we don’t complicate what can and should be simple.

We offer a single strategy because we believe it’s the best strategy. Here are a few frequently asked questions to help you get to grips with investing with 10X.

Which product should I choose? 

That depends on your current situation and your future goals. 10X offers various products, each with a clear purpose.

• The 10X Retirement Annuity is for someone who wants to save for their retirement. Retirement Annuities come with great tax benefits.
• The 10X Preservation Fund is for someone who has a pension or provident fund with their employer but is changing jobs and needs to move their money to a new fund.
• The 10X Living Annuity is for someone who is retiring and would like to reinvest their retirement savings and be paid a monthly income from those savings.
• The 10X Unit Trust is for someone who is saving for something other than their retirement and would like to have easy access to their savings.

How do I choose a fund for my investment product?

A fund is a grouping of assets such as shares, cash, bonds and property. For each product, you will be able to choose a fund.

The 10X Your Future Fund is suitable for investors seeking long-term capital growth that is achieved with cost-effective exposure to a range of local and international asset classes.

There are other funds for defensive investors or for investors looking for more international asset exposure.

See our Funds page for more information.

How do I sign up?

Signing up online is quick and painless. Head to our online investment portal and select the product you would like to sign up for. From there, simply follow the instructions. If you need to save and exit your application at any time you will be able to log in again and continue from where you left off.

Alternatively, you can contact us to speak with a consultant who can guide you to sign up.

What you need to know about EAC (Effective Annual Cost)

EAC was introduced by ASISA so that customers have one standard with which to measure and compare the total cost of owning and accessing an investment like a retirement annuity, including investment management, administration, advice, penalties for early termination, cost of loyalty bonuses and guarantees.

10X was set up to provide a simple retirement solution with one all-in fee for the client. In addition to the transaction costs, which every portfolio incurs in management of the underlying investments, 10X charges clients one flat fee that covers investment management and administration.

At 10X there are no penalties for leaving early (usually the clawing back of fees paid to financial advisers as an upfront lump sum to sell the product). There are no costs for loyalty bonuses or guarantees. The entire fee comes through in the Investment Management section of EAC and it is consistent across time. All of the additional costs that would have been paid to other providers are invested on behalf of the client.

A client could pay a financial advisor to invest with us; in this case his/her specific EAC would be higher. Our one solution is designed so that clients do not need to ask or pay for advice to select what fund they are invested in.

Why should I invest with an index fund instead of an active fund manager?

Index funds deliver better long-term returns than actively managed funds. In fact, statistics show that only 1 in 5 actively managed funds ever manage to beat the index.

Why do we use 6%? (Percentage of South Africans who will be able to retire comfortably.)

According to National Treasury only 6% of the population will have accumulated enough money to retire comfortably, without having to sacrifice their standard of living.

While National Treasury has cited this statistic, and it has been used multiple times in the media, the research backing up this statistic is not readily available. In addition to the 6% stated, 2% and 10% have been bandied around in the media. There are multiple factors which impact this statistic and it can be considered a moving target depending on these factors.

While the actual statistic cited may be invalid, be it 2%, 6% or 10%, what is indisputable is that the majority of South Africans are facing a retirement savings crisis. The specific number should not detract from the issue at hand. Using any of the above statistics, 90% of South Africans have not saved enough money for retirement.

How long does it take for the fund to pay out the withdrawal benefit?

Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 10 business days for 10x to pay out the funds. If it takes longer, you should follow up with our administrator to see what is holding up the process (or request your previous HR department to follow up on your behalf).