Tax-Free Shares FAQs
What is an ETF?
An Exchange Traded Fund (ETF) is an investment fund that is traded on the stock exchange. It holds assets such as shares, commodities, or bonds and trades close to its net asset value over the course of the trading day. Most ETFs track an index such as a share index or bond index. ETFs are attractive as investments because of their low costs, tax efficiency, and share-like features.
What is the RMB Top40 ETF?
The RMB Top40 ETF aims to provide returns linked to the performance of the FTSE/JSE Top40 Index. The ETF tracks the component equities of this index in proportion to the Index weightings. The FTSE/JSE Top 40 index contains the 40 largest shares in terms of market capitalisation listed on the JSE. The RMB Top40 ETF pays a quarterly distribution, made up of any dividends or interest earned from the underlying shares.
What is the RMB MidCap ETF?
The aim of the RMB MidCap ETF is to provide returns linked to the performance of the FTSE/JSE MID CAP Index. The ETF tracks the component equities of the Index in proportion to the Index weightings. The FTSE/JSE Mid Cap index contains the largest 60 companies listed on the JSE that are not included in the FTSE/JSE Top40 Index in terms of market capitalisation. The ETF thus holds the 41st to the 100th largest companies on the JSE in terms of market capitalisation. The RMB MidCap ETF pays a quarterly distribution to investors, which is made up of any dividends or interest earned from the underlying shares.
Do I have to contribute monthly?
You have the option of either contributing a monthly amount of R300 or a minimum once-off lump sum of R1 000. You should always consider the cost implications of each option carefully.
What are the costs?
See 'Fees' under 'Shares Option'.
Will my contributions be monitored?
Contribution limits into the FNB Tax-Free Savings Account will be capped as per annual tax year and lifetime limits. You may contribute into either the Tax Free Cash Deposit or Tax-Free Shares Account, but not both product choices. It is your responsibility to ensure that you stay within the limits if you hold more than one tax free product across institutions.
Can I transfer money out of this account?
In order to transfer money out of this account please contact the call centre on 0860 SHARES (742737). The transfer will be treated as a withdrawal and reported for tax purposes as such.
How long will it take to receive my money after I sell my investment?
After selling your investment you will receive your money as per STRATE rules.
Is there a minimum account balance?
There is no minimum account balance.
Who can open this account?
This account will be available to all South African tax resident natural persons.
How do I know how well my investment is performing?
You can access your Tax-Free Shares Account through Online Banking or through the FNB App.
Do I have to be an FNB customer to open the Tax-Free Shares Account?
Yes, a qualifying FNB transactional or cheque account is required to open the FNB Tax-Free Shares Account.