FNB suggests that stokvels, traditionally used for informal savings, should consider diversifying their portfolios to achieve better returns. Rather than withdrawing all funds for short-term spending during the festive season, stokvels can explore long-term investment options like unit trusts and other investment vehicles. By diversifying their investments and adopting collective saving principles, stokvel members can enhance their individual savings and achieve both short and long-term financial goals. Reinvesting stokvel earnings into tax-free savings accounts and other long-term vehicles can maximize the power of compounding returns. Financial institutions should offer a range of investment options to stokvels, allowing them to access various investment products and solutions suited to their needs.
