If you have ever heard of a traditional Stokvel before, you may be interested to know what the advantage of investing together could be. A Stokvel is a fairly old method of investment that has been going on for generations throughout South Africa. The idea is to have members contribute a small amount of money each month into a large pool of money together. After a considerable amount of money has been pulled together the goal will be to eventually invest together in a local community project or promising investment/loan. Eventually one off lump sum will be calculated and returned to users after an agreed on period. This is usually a percentage of the total in the Stokvel.
This system of investment may sound similar to other pooled investment strategies like a mutual fund, only it cuts out a lot of the extra costs associated with investment and minimizes the risks associated with investment by minimizing the total amount that every person has to invest to see a great return.
By pooling money in together it’s also possible to achieve investment goals and return goals much faster than investing on your own. One of the main problems with investing together in a Stokvel however is the organization of the entire group and the investment strategy. This is no longer a problem however with the invention of Yethu.
With Yethu you can create small investment groups in the Stokvel format, set meetings, set a weekly or monthly contribution for every member and have full transparency on the entire group during investment. This application makes it easy to organize a Stokvel, see great returns and minimize the risks associated with investment. Checking on your investments can be done anytime from the application and it is simple to push notifications and communicate with the entire group through Yethu as well. Managing multiple Stokvels for types of investments or savings goals can also be done in a breeze!
Investing together is now possible and made very easy with the help of Yethu. If you are interested in getting started with achieving your financial goals, check out Yethu today and invest together.