Easy equities investment

Easy equities investment update EC10

For those who may not follow me, this is my monthly Easy Equities Investment update for September 2019. You can follow my posts from my first investment with EasyEquities up to my last published update being December 2019.

This months update is quite short and sweet as there isn’t a lot to add since the August update besides the fact that I have allocated 1% to crypto currencies.

Am I crazy or mad? I don’t know…. I have successfully avoided crypto up until now but have decided to invest just a small amount to see how it turns out.

And at this point you may want to read whether investing in Bitcoin is a good investment.

The current balance

EasyEquities ETF portfolio - September 2019

Up to now (26 September 2019) I have invested a total of R11,950 and after fees and costs, the balance is now R12,159.86

This means that if I look at the money I invested and calculate the daily compound interest since the start, I am averaging a 5.6% growth. This isn’t necessarily great (in fact it isn’t too good) but I’m keen to see how this evolves over time. All I need to do is keep track of the date I invest money as well as the amount and I can always run this calculation.

As always mentioned, passive investing is for the long term so this kind of month-to-month update is a little pointless (unless of course you like tracking things as I do!)

EasyEquities ETF growth versus bank investment
EasyEquities ETF growth versus bank investment

My portfolio allocation

Nothing has changed since my August 2019 update. Here is the portfolio allocation of my Easy Equities investment.

  • 25% Local Equities – CoreShares Sci-Beta (Smart Beta)
  • 15% Local Equities – Satrix Top 40
  • 10% Local Property – Satrix Property ETF
  • 39% Offshore Equities – Satrix Worldwide
  • 10% Offshore Property – Sygnia Global Property ETF
  • 1% EC10 – Crypto (previously DCX10)

When investing additional funds I simply re-balance the ETFs to match my goal.

EasyEquities ETF portfolio - September 2019
EasyEquities ETF portfolio – September 2019

My Crypto investment with EC10

As you see in the image, I started with the DCX10 Index. This however has been rebranded and restructured to the EasyCrypto10 crypto bundle (or EC10 index). It holds the top 10 crypto currencies as assets and works pretty much like an ETF or a unit trust which holds a selection of underlying assets in a fund structure. It’s more like a general basket though as the board of directors get to select and vote on which crypto’s to add. So, technically speaking it may not be the Top 10 performers, it could be based on popularity, speculation, or consensus.

Right now I’m still a little skeptical of crypto’s. Partly because I don’t understand them very well, and maybe it’s because I’m old. LOL. Also, it’s very unregulated and that also makes me a little nervous.

I have however invested in the EC 10 fund and I put R1,000 on my Luno wallet which I “play” with. It’s easy enough and pretty safe. I am okay with losing it if things crash.

EC10 share price

The EC10 share price is determined by the underlying crypto’s that the board selects, and is weighted by market capitalization. As at January 2022, Bitcoin makes up 53.9% of the basket and as such, the EC10 price will be hugely impacted by the price of Bitcoin.

EC10 crypto bundle as at January 2022
EC10 crypto bundle (January 2022)

A basket such as EasyCrypto10 is however less risky due to it’s diversification, but, cryptos in general are considered risky due to their volatile nature. It’s really impossible to predict the price, growth, or future of cryptos, although many people try.

There are folk who have made huge profits off crypto, and I personally know a young man who has lost everything as he invested a lot in a crypto fund which turned out to be a scam. See how over $6 billion in Bitcoin goes missing.

Moral of the story: Be careful with your money! No really! Be careful!

Please share your thoughts

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