The Sanlam Tax-free Investment offers low fees and discounted investment management fees making it a competitive and cost-effective savings choice. As Wealthsmiths, we are dedicated to improving the savings culture in the country.

Social groups allow clients to reduce the administration charge on their Sanlam Tax-free Investments by encouraging friends and family to take out their own Sanlam Tax-free Investments over time and join their social group. The administration charge for all clients within a social group will be calculated based on the combined fund value of the whole group. Members of a social group can buy either the Core or Comprehensive plan.

Clients buying the Sanlam Tax-free Investment online will be contacted before the end of their first plan year to take advantage of this benefit.

You can make monthly or one-off payments into a Sanlam Tax-free Investment. The payments in any tax year are limited to the annual contribution limit in that year. This is currently R30 000 per year. The total lifetime contribution limit is R500 000. If you go above these limits you will incur tax penalties.

If you choose to make monthly payments, you can pay the following:

• Between R250 and R2 500 on the Core plan
• Between R500 and R2 500 on the Comprehensive plan.

If you start with a one-off payment, you can pay

• Between R10 000 and R30 000 on the Core plan
• Between R15 000 and R30 000 on the Comprehensive plan.

You can add additional one-off payments of between R2 500 and R30 000 in future, as long as your total payment in the tax year does not exceed the annual contribution limit.

The maximums above will be adjusted if the annual contribution limit is changed.

Yes. There is no limit on the number of tax-free savings accounts you can have. Make sure your annual payments across all approved tax-free savings accounts (at Sanlam or other provider) do not exceed the annual contribution limit.

There will be tax penalties if you invest more than the annual contribution limit stipulated by National Treasury. To avoid penalties, make sure that your annual payments across all approved tax-free savings accounts (at Sanlam or other providers) stay below these limits.

You will need to submit the IT3(s) statements provided by Sanlam or other providers to SARS with your annual tax return. If you provide Sanlam with your tax number, we will submit the information to SARS electronically as well.

The South African tax year runs from 1 March to 28 February of the next year.

Yes, you can add one-off payments at any time after your plan has been issued. The minimum additional one-off payment is R2 500 for both Core and Comprehensive plans. Please call the Sanlam Client Contact Centre at 021 916 5000 or 0860 SANLAM (0860 726 526), or send an email to life@sanlam.co.za.

Recurring payments into the Sanlam Tax-free Investment are payable by debit order.

One-off payments at the start of the plan are also payable by debit order. One-off payments made during the lifetime of the plan may be paid by debit order or cash. The Sanlam Client Contact Centre will give you a cash reference number when you arrange for an extra one-off payment made in cash.

No, but you should decide upfront how long you plan to invest, as your fund allocation needs to be appropriate for your expected investment term. We use the expected investment term to manage the Life Time Investment Option on Core plans, and to determine the default fund on Comprehensive plans. It is important that you adjust the expected investment term on a Core plan or review the underlying funds on a Comprehensive plan if your expected investment term changes.

The effect of compound interest, or earning investment return on investment return, is increased in a tax-free savings account due to the tax relief on the investment return. The longer you invest the more benefit you will get. We have a minimum investment term of five years for both Core and Comprehensive plans, so that you benefit from the tax relief and get value for money.

The plan starts on the date that the first payment is paid. If we cannot collect the first payment on your preferred start date, we will collect the first payment one month later and move the start date in line with this.

You need to select the date you want the first payment to be taken off your bank account. If it is not possible to take off the first payment on this date, we will take it off one month later.

All payments are due on the same day of the month as the date selected for the first payment, or the first working day thereafter if the due date is not a working day.

Select the date for the first payment to fall on or just after your salary payment date, to make sure that you have enough funds available.

You can choose your monthly payments to remain the same or increase yearly on the plan's anniversary. Payments can increase at a fixed rate or at the Sanlam inflation rate. Sanlam will limit the annual payment increase to make sure that your payments in a tax year do not exceed the annual contribution limit.

The Sanlam inflation rate is calculated considering the change in the consumer price index, or any other commonly accepted method of measuring inflation that may apply at the time. The Sanlam inflation rate may differ from published inflation rates due to differences in calculation methods. A minimum rate applies, which may change from time to time.

You can withdraw money at any time. No fees will be charged for withdrawals.

Any re-investment will count towards your total tax-free savings payments, which are limited to R500 000 over your lifetime. Withdrawing funds may prevent you from reaching your savings goals.

The effect of compound interest, or earning investment return on investment return, is increased in a tax-free savings account due to the tax relief on the investment return. The longer you invest the more benefit you will get.

The effect of compound interest, or earning investment return on investment return, is increased in a tax-free savings account due to the tax relief on the investment return. The longer you invest the more benefit you will get.

We invest your full payment in the underlying investment funds by buying units in each of these funds. The unit prices of the investment funds are not guaranteed, and may increase or decrease over time.

The total fund value of the plan is equal to the sum of the values of the underlying investment funds. The fund value for each investment fund is equal to the number of units you have in the fund multiplied by the unit price at the calculation date.

The current charges for the Sanlam Tax-free Investment:

Administration charge
This is equal to a percentage of the fund value and a minimum of R25 on the Core plan and R40 on the Comprehensive plan per month. This will be adjusted yearly to allow for inflation. The percentage used is a linear interpolation of the percentages in the table below, based on your current fund value.

Asset management and other direct investment charges
The asset managers include the asset management charge when setting the unit prices for the investment funds. The charge is a percentage of each plan's part of the market value of the assets in the investment fund. The value of the asset management charge for each of the available investment funds is shown in the fund fact sheet for that fund - View Fund Fact Sheets

There will be no transaction charge for any of the following:

• Reducing or stopping of a recurring payment
• Withdrawals from the plan
• Terminating the plan

You will be charged R300 to change from a Core plan to a Comprehensive plan.

On a Comprehensive plan you can switch your investment funds at any time. You have four free switches per plan year. Thereafter a switching fee of R600 will be charged per switch.

On a Core plan, your funds are invested in the Satrix Lifetime Investment Option for Tax-free Investments. We manage your investment on your behalf. We will gradually switch your funds to a more stable investment. All of these switches are free.

No, but you can withdraw a part or all of your investment if you need access to the funds.

Yes, once the fund value on a Comprehensive plan has reached a specific minimum (currently R40 000) you can ask for a monthly income to be paid from your plan.

You cannot take income while making recurring payments.

You cannot take income from a Core plan.

The recurring payment can be increased, reduced or stopped. Contact the Sanlam Client Contact Centre at 021 916 5000 or 0860 SANLAM (0860 726 526), or send an e-mail to life@sanlam.co.za.

• The minimum increase amount is R250 per month
• If you reduce the payment, it cannot be less than the minimum payment for a new plan at that time. This is currently R250 per month for a Core plan and R500 per month for a Comprehensive plan
• The recurring payment may only be stopped if the remaining fund value of the plan will be at least R70. If not, the plan will lapse

Contributions to a tax-free savings account are made from post-tax income.

Any interest, dividends or capital gains will be tax free. This means that you don't pay tax on the growth on your investment. No tax is payable on withdrawals.

The fund value on the date we are notified of your death will be paid to the beneficiaries on the plan or to your estate, if no beneficiaries were appointed.

Beneficiaries will receive the proceeds tax free, and can choose to take out a new tax-free investment if they want to continue investing in this product.

In the event of a claim, please tell us as soon as possible. To get the necessary claim forms and to make sure that all the required information is supplied, contact the Sanlam Life Claims Call Centre at 021 916 1710.

Depending on the nature of the claim, certain documents (e.g. a death certificate) may be required.

Once your application has been processed, you will have 30 days in which to examine the contract documents and decide whether you wish to continue with the plan.

If the plan does not meet your needs, and if you have not made any changes to it, you can cancel it by letting us know in writing during this period. We will refund any payments you have already made. If the assets in which the payments were invested have decreased in value, or if you have already received benefits from the plan, we will reduce the amount to be refunded to you in line with this.

If you need further information on your Sanlam Tax-free Investment please phone our Client Contact Centre on 021 916 5000 or 0860 SANLAM (0860 726 526), or send us an email at life@sanlam.co.za. Our Compliance department can be contacted at the same number.

Yes, you will need to provide proof of identity and your residential address if you make recurring payments of R25 000 or more per year, which is R2 083 or more per month.

If this is required, one of our call centre agents will call you to make the necessary arrangements.

In the Satrix Life Time Investment Option for Tax-free Investments we manage your investment on your behalf. This option invests in the Satrix Balanced Index Fund and the Satrix Low Equity Balanced Index Fund. Both of these funds are passively managed funds, tracking a basket of indices. The allocation to these funds is based on the expected investment term.

If the expected investment term is longer than 10 years, all funds are invested in the Satrix Balanced Index Fund. This fund is moderately aggressive and can have a fair amount of fluctuations in short-term returns, in anticipation of higher real return over the long term.

From ten years before the end of your expected investment term, 2.5% of your investment is switched to the Satrix Low Equity Balanced Index Fund every quarter, a fund with more stable investment returns.

If your expected investment term at the start of the plan is shorter than 10 years, your investment is allocated to both the funds. For example, if your expected investment term is five years, 50% of your investment will be allocated to each of the funds.

It is important that you adjust your plan if your expected investment term changes. This will ensure that your investment is allocated appropriately. Contact the Sanlam Client Contact Centre on 021 916 5000 or 0860 SANLAM (726 526), or send an e-mail to life@sanlam.co.za.

Vertical axis = Fund allocation
Horizontal axis = Remaining term

If you provide Sanlam with your tax number, Sanlam will submit your information electronically to SARS. This will make it easier to complete your annual tax return.

You can contact a Sanlam financial planner to get advice on your fund choice. You can add a fee for advice to your existing Comprehensive plan. Contact the Sanlam Client Contact Centre at 021 916 5000 or 0860 SANLAM (0860 726 526), or send an e-mail to life@sanlam.co.za. Alternatively, you can submit an enquiry/request online at: www.sanlam.co.za/contact/getadvice/Pages/default.aspx

When you get advice from a registered financial planner, and buy a product through that planner you are protected under the Financial Advisory and Intermediary Services (FAIS) Act of 2002. This means that if you are not satisfied with the advice you received and the manner in which we responded to a complaint you may have had, you can submit a formal complaint to the FAIS Ombud.

If you purchase a financial product directly from a product provider without the help of a financial planner, you take full responsibility for your decisions.

Multi-asset class funds offer exposure to various asset classes including cash, equity, bonds and property. In a passively managed multi-asset class fund each underlying asset class tracks the return of its respective index. For example, in the SATRIX Balanced Index Fund the property exposure is managed to deliver the performance of the FTSE/JSE SA Listed Property Index (J253). The composite index simply combines the underlying indices, each with a specified weight.

A passive or index-tracking fund is used to follow the performance of a specified underlying index as closely as possible. An index is a grouping of shares or other securities. Indices can be constructed to represent the overall market or a specific sector or theme. This makes it possible for individual investors to obtain the performance of an index.

Satrix funds are managed by full replication, which means the fund will hold exactly the same underlying securities as the index, in exactly the same weights. Any changes that are applied to the index will also be applied to the index-tracking fund.

Passive management is an investment strategy based on tracking an underlying index, with the aim of delivering performance as close to that of the index as possible. An index-tracking fund is therefore constructed to match the specified index.

Actively managed funds are constructed to differ from the index that is used as their benchmark. Following rigorous company analysis, active managers make specific investment decisions with the aim of constructing a fund that outperforms the relevant benchmark. The outcome of these investment decisions will determine whether the active fund performs better or worse than the index.

The fees associated with active management are higher than those associated with passive management.

Click on the Login icon (top right-hand corner of this page). Select the Secure Services link on the Login menu. You can use your plan number to register for Secure Services.

Click on the Login icon (top right-hand corner of this page). Select the Secure Services link on the Login menu. You can use your plan number to register for Secure Services.

Investment funds can invest in multiple asset classes or a single asset class. For funds with a single asset class, the fund mandate describes the asset class (e.g. equity, cash or property). For funds with multiple asset classes, the fund mandate describes the investment risk profile (e.g. cautious, moderate or aggressive):

CONSERVATIVE: Conservative investments provide modest returns with a high degree of capital security. A typical portfolio will consist primarily of income orientated asset classes such as cash, bonds and property, with very little exposure to equities. The expected return may be close to inflation. There is therefore a risk that the real value of an investment may reduce over time, after taking fees and taxes into consideration.

CAUTIOUS: Cautious investments provide stable returns with limited risk of capital loss. A typical portfolio will consist primarily of income orientated asset classes such as cash, bonds and property, with limited exposure to equities.

MODERATE: Moderate investments should generate real returns by outperforming inflation over the longer term, but will at times experience short-term negative returns. A typical portfolio is diversified over all major asset classes to provide a balance between risk and return. There is a moderate risk of capital losses in the short term.

MODERATELY AGGRESSIVE: Moderately aggressive investments can have a fair amount of fluctuations in the short-term returns, in anticipation of higher real returns over the long -term. A typical portfolio is diversified over all major asset classes, with a bias towards equities to create real capital growth over the long term. There is a substantial risk of capital losses in the short -term.

AGGRESSIVE: Aggressive investments aims to maximise real return over the long term, but may experience severe short-term negative returns. A typical portfolio is diversified over all major asset classes, with a strong bias towards equities in order to significantly outperform inflation over the long term. There is a significant risk of capital losses in the short term.

Yes, you can apply for a Sanlam Tax-free Investment on behalf of your child or other family member, but keep in mind that you will be using part of their tax-free allowance, which may limit their ability to save for themselves via this type of product later. Be careful of donations tax, if applicable.

A tax-free savings account can only be opened for an individual. You can open one for each individual in a family, but cannot open one in the name of a trust or a company.