Mzansi Mail Newspaper
Business & Finance Desk
The Johannesburg Stock Exchange (JSE) is Africa’s largest stock market, home to some of the continent’s most valuable companies. From banking giants like Standard Bank to retail powerhouses such as Shoprite, buying shares on the JSE offers South Africans a chance to grow their wealth and participate in the economy’s success. But for many, the process still feels complicated or reserved for the wealthy.
In reality, with the right guidance, any individual can own shares either directly or through an investment company.
1. Buying Shares as an Individual
To buy shares on the JSE yourself, you’ll need to go through a licensed stockbroker. You cannot buy directly from the exchange without one. Here’s how to start:
Step 1 – Choose a Stockbroker
Stockbrokers act as the middlemen between you and the JSE. Options range from full-service brokers (who give advice) to low-cost online brokers. Popular choices include EasyEquities, PSG Wealth, and FNB Securities.
Step 2 – Open a Trading Account
Like a bank account, this will hold your funds for investing. You’ll need to provide your ID, proof of address, and bank details to comply with financial regulations.
Step 3 – Fund Your Account
Deposit the amount you want to invest. Many platforms allow you to start with as little as R100.
Step 4 – Choose Your Shares
Research is key. Look at a company’s financial performance, growth potential, and industry trends before buying.
Step 5 – Place Your Order
Through your broker’s platform, select the company, number of shares, and whether to buy at the market price or set a limit.
Step 6 – Monitor Your Investment
Share prices move daily. Keep an eye on your portfolio and the news to make informed decisions.
2. Buying Shares Through an Investment Company
If you prefer a hands-off approach, you can invest through an asset management firm, investment company, or collective investment scheme.
How It Works:
- You put your money into a professionally managed fund (e.g., unit trusts or exchange-traded funds).
- A team of investment managers chooses which shares to buy and sell on your behalf.
- Your investment grows based on the performance of the underlying shares.
Advantages:
- No need to research individual companies.
- Professional expertise.
- Diversification, which spreads your risk.
Well-known managers include Allan Gray, Coronation, and Sanlam Investments.
Direct vs. Indirect Investment – Which is Right for You?
| Direct (via broker) | Indirect (via fund) |
| Full control over your share picks. | Professional management. |
| Requires time for research. | Minimal time commitment. |
| Potentially lower fees for active investors. | Diversified portfolio lowers risk. |
Important Tips for Beginners
- Start small: Only invest what you can afford to lose.
- Think long term: The JSE can be volatile in the short run.
- Diversify: Don’t put all your money into one share.
- Understand the risks: Share prices can go down as well as up.
Bottom Line:
Owning shares on the JSE is no longer just for the wealthy or financial experts. Whether you prefer to buy shares directly through a stockbroker or invest indirectly through a fund, the opportunities are there for everyday South Africans to grow their wealth.
As financial literacy grows, more people are expected to participate in the market turning the JSE into a true reflection of the nation’s economic potential.
By Mzansi Mail Business Reporter
