Personal Trust Managed Fund (Tax-Free) is an investment that allows natural persons that are South African residents to earn tax-free growth on their contributions to this unit trust. All returns earned on the invested contributions are free from South African tax on interest, capital gains and dividends.
All tax-free savings account contributions will be invested in the Personal Trust Managed Fund. This low cost single manager fund invests in a combination of local and foreign equities, property trusts, bonds and cash. It is designed to seek above-average returns (inflation + 6%) with a medium to high risk profile.
What are the limits?
- Annual contributions are limited to R36,000 per tax year
- Unused amounts may not be rolled over
- A lifetime contribution limit of R500,000 applies
- Any contributions over-and-above the legislated limits will be subject to 40% ‘penalty’ tax
- Reinvestment of returns or dividends will not count as contributions as long as they are not withdrawn and reinvested
- Funds can be withdrawn however the value of the withdrawal will be deducted from the annual and lifetime limits.
