SETTING A CAR FUND

Back in July I mentioned my plan to set a car fund here. I was to choose between that and buying a car through the traditional high interest car loan. The thought has never left my head since. The most tricky part was on the choice of saving/ investment tool. It was either the money market, similar to the Just Invest account that I use for the emergency fund, or stocks through an index fund.

I then went ahead to compare the Mr's index funds using the spreadsheet (I love excel). Remember how I go on and on about the Dividends as a great form of passive income. So Satrix DIVI was an obvious winner. It has done well in the past year. Its done well both on capital growth and dividend pay out compared to Satrix 40. That's all I compared.

Setting a car fund using Satrix DIVI

See the comparison above. Its not as dramatic in a 3 year graph. But, like I mentioned, the high dividend payout is my main motivation. I will stick with the DIVI for the car fund. Its the R5000 per month until I cant take the car shopping abstinence anymore. I hope I can hold on for 5 years. If I don't, its no big deal, I guess. Just saying.

Lets now take a closer look at the share basket in this index fund:
Financials 38.7%
Industrials 18.27%
Telecoms 12.67%
Materials 9.67%
Consumer Services 15.67%
And Others

Whats not to like. I went ahead to check the individual shares in those categories. I liked them. And the 20% growth for the past year also helps. I will report on this monthly as well. Hope its a fun and profitable 5 year ride. Browse the individual shares in the basket below.

Share Basket Constituents for Satrix DIVI - October 2012

Share Name	Industry	Weight
ABSA Group Ltd	Financials	3.67%
African Bank Inv Ltd	Financials	3.52%
Allied Elec Corp Pref	Industrials	3.38%
Allied Technologies Ltd	Telecommunications	4.95%
AVI Ltd	Consumer goods	2.36%
Coronation Fund Mngrs Ld	Financials	4.47%
Exxaro Resources Ltd	Basic Materials	2.61%
Firstrand Ltd	Financials	2.57%
Investec Ltd	Financials	3.16%
Investec plc	Financials	2.96%
JD Group Ltd	Consumer services	3.61%
JSE Ltd	Financials	2.51%
Kumba Iron Ore Ltd	Basic Materials	4.71%
Lewis Group Ltd	Consumer services	4.46%
Liberty Holdings Ltd	Financials	3.58%
MMI Holdings Limited	Financials	3.67%
Mondi Ltd	Basic Materials	2.33%
MTN Group Ltd	Telecommunications	3.48%
Nampak Ltd	Industrials	3.44%
Nedbank Group Ltd	Financials	2.88%
PPC Limited	Industrials	3.24%
Remgro Ltd	Industrials	4.54%
Reunert Ltd	Industrials	3.64%
Sanlam Limited	Financials	2.70%
Sasol Limited	Oil and Gas	2.81%
Standard Bank Group Ltd	Financials	3.02%
The Foschini Group Limit	Consumer services	2.85%
The Spar Group Ltd	Consumer services	2.19%
Vodacom Group Ltd	Telecommunications	4.16%
Woolworths Holdings Ltd	Consumer services	2.52%

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