*This content is brought to you by Brenthurst Wealth
Maria Smit*
Selecting the right investment vehicle is crucial in achieving your financial objectives. Whether you are looking to preserve capital, generate steady income, or achieve long-term growth, understanding the different investment options available can help you make informed decisions. However, with the vast number of choices available, consulting a financial advisor is essential. An advisor not only helps tailor investments to your specific needs but also provides guidance to prevent impulsive or hasty decisions that could impact your financial future.
1. Understanding capital preservation
Capital preservation is an investment strategy aimed at maintaining the value of an investor’s assets while minimizing the risk of loss. It is particularly suitable for individuals who prioritize financial security over growth, such as retirees or those with a fixed income. Investments that align with capital preservation include:
- Savings Accounts – Low risk and insured, providing security but minimal returns.
- Treasury Bills – Government-backed and low risk.
- Fixed Deposits – Fixed returns but limited liquidity.
- Money Market Accounts – Slightly better returns with moderate liquidity.
Limitations of capital preservation
- Low Returns – These investments often yield minimal or near-zero returns.
- Inflation Risk – Purchasing power erodes over time if returns do not outpace inflation.
- Limited Availability – In volatile markets, truly risk-free options become harder to find.
2. Growth-oriented investments
For investors with a longer time horizon and a higher risk tolerance, equities and diversified portfolios provide greater growth potential. Investment vehicles that focus on capital appreciation include:
- Stocks – Higher risk but historically strong long-term returns.
- Exchange-Traded Funds (ETFs) – Diversified exposure to various sectors and markets.
- Real Estate Investment Trusts (REITs) – Potential for growth with real estate exposure.
- Offshore Investments – Access to global opportunities with potential currency diversification benefits.
- Private Equity and Venture Capital – High-risk, high-reward opportunities for accredited investors.
Benefits of growth investments
- Higher Long-Term Returns – Historically, equities have outperformed other asset classes over extended periods.
- Inflation Hedge – Returns often exceed inflation rates, preserving purchasing power.
- Diversification Potential – Spreading investments across industries and geographies can mitigate risks.
3. The role of investment flexibility in modern portfolios
Investment flexibility allows for customization according to individual risk tolerance, time horizon, and financial goals. In the past, investment options were often rigid, but today, various strategies cater to investors’ diverse needs.
Investment flexibility for employers and employees
Employers and employees participating in retirement and investment funds now have more choices than ever:
- Customizable Investment Portfolios – Companies can align default investment strategies with their employees’ demographics and risk profiles.
- Active vs. Passive Management – Investors can choose between actively managed funds or cost-effective passive strategies.
- Sector-Specific Investments – Options include technology, healthcare, infrastructure, and environmental, social, and governance (ESG) investments.
4. Income-generating investments
For investors seeking stable income, income-generating investments provide a balance between risk and return. These include:
- Dividend Stocks – Companies that pay regular dividends.
- Bonds – Government and corporate bonds offering fixed income.
- Rental Real Estate – Passive income from rental properties.
- Annuities – Insurance-based products offering guaranteed income streams.
Advantages of income-generating investments
- Predictable Cash Flow – Regular income streams to supplement other earnings.
- Lower Volatility – Less exposure to market fluctuations compared to growth investments.
- Portfolio Stability – Helps balance high-risk assets with steady returns.
5. Striking the right balance
Choosing the best investment vehicle requires a careful assessment of:
- Risk Tolerance – Conservative investors may prioritize capital preservation, while aggressive investors may seek high growth.
- Time Horizon – Short-term investors should focus on stability, whereas long-term investors can afford market fluctuations.
- Financial Goals – Whether saving for retirement, purchasing a home, or generating passive income, each goal requires a tailored approach.
Conclusion
The investment landscape has evolved to offer greater flexibility and personalization. While capital preservation strategies provide security, growth-oriented investments offer higher potential returns. Income-generating assets can add stability, while advances in financial technology now enable investors to tailor their portfolios more effectively than ever. However, with the vast number of options available, it is essential to consult a financial advisor. An advisor helps align investment choices with your unique financial goals and ensures you avoid hasty or emotionally driven decisions that could impact your long-term success.
*Maria Smit, CFP®, is a financial advisor at Brenthurst Wealth Pretoria
I obtained my National Diploma in Financial Information Systems from the Cape Peninsula University of Technology in 1999 and have worked in the wealth management industry since January 2000. Over the years, I have gained extensive experience in various roles, including Portfolio Manager Assistant, Planner Assistant, and Paraplanner.
Esmarelda Isaacs-Andreas joined the Brenthurst Wealth Stellenbosch office in October 2025, taking on the dual role of Receptionist and Fiduciary Administrator.
Angelique Anderson joins our Pretoria office as an Administrative Assistant, bringing over 24 years of experience across the financial, legal, and executive support sectors, both locally and internationally. Her meticulous attention to detail, discretion, and extensive knowledge of asset finance and compliance make her an invaluable addition to our team.
Ashley joined Brenthurst Wealth in January 2025 as Office Administrative Assistant and Receptionist for the Stellenbosch Office.
Michelle joined the Brenthurst Wealth Team in 2025 as a paraplanner assisting Iniel Van Zyl and Leslie Greyling in our Fourways office.
René Heystek joined Brenthurst Wealth in November 2023, as receptionist and administrative assistant in the newly established George/Garden Route office.
Michelle Heystek has built a career in the financial services over the last two decades, after obtaining her B.Com degree in Financial Management in 2005. Once she joined Brenthurst in 2006, she continued her academic journey, obtaining her Certificate in Wealth Management from INSETA in 2007, followed by a Postgraduate Diploma in Financial Planning from the University of the Free State. In 2008, she earned the Certified Financial Planner (CFP®) designation.
Anelle joined Brenthurst Wealth as a Receptionist and Administrative Assistant to Brian Butchart in the Cape Town office in December 2023. She has a wealth of knowledge from working as a liaison between Financial Advisers and clients at TMA and Absa Investment Management Services (Aims) since 1998. She obtained her B. com degree from the University of Port Elizabeth in 1997.
Sanet was appointed in April 2020, joining our Cape Town team as an Executive Administration Assistant to Renee Eagar. She has been in the financial services industry since 1990. Her previous experience includes positions at Sanlam, BJM and ABSA. She spent her last 12 years working at Alexander Forbes Private Client Wealth as a Senior Wealth Management Assistant. She has received numerous accolades over the years which include but not limited to, Alexander Forbes Client Service Excellence – Silver award in 2014,2015 and 2017. Sanet has also obtained her Certificate in Wealth Management (NQF 5) in 2012 and achieved “Best Student of the Year” from Moonstone.
Maria Smit is a Certified Financial Planner® with over 10 years of experience in the financial planning industry.
