The way you save — including whether you drip-feed money monthly, leave it sitting in cash, or invest it in a suitably diversified portfolio — can materially change your long-term investment outcome, Allan Gray distribution team manager Marise Bester says, highlighting that investor behaviour is often as important as market performance. The core event is a renewed focus on savings behaviour and risk management, and how actively managed portfolios can be used to navigate volatility and protect long-term goals.
For South African households, the immediate “direct cost” of getting the saving method wrong is usually not a visible monthly debit order increase, but a reduction in future purchasing power: money kept too conservatively for too long may fail to beat inflation after fees and taxes, while money invested too aggressively for the time horizon can force withdrawals during market drawdowns. In practical terms, this can show up as needing to raise retirement contributions later, delaying retirement, or diverting more of the current household budget to catch up on missed growth.
Bester’s message is that risk should be managed with intention rather than avoided entirely: aligning the investment to the purpose (emergency fund versus home deposit versus retirement), maintaining diversification, and contributing consistently can reduce the likelihood of buying high and selling low. Actively managed portfolios, she argues, may add value when managers can adjust exposures, avoid weak businesses or overpriced areas of the market, and keep the portfolio aligned to the mandate — but only if the investor remains disciplined and the total cost of investing is justified by outcomes.
A simple household example illustrates the impact: a family that leaves long-term savings in a low-yield bank account because it “feels safe” may later discover the rand value grew, but the real buying power did not, especially after inflation and tax. Conversely, a family investing for a short-term goal in a volatile equity-heavy portfolio may be forced to withdraw after a downturn, locking in losses. The practical takeaway is to separate short-term cash needs from long-term wealth-building, set an appropriate risk level for each goal, and treat consistency and cost-awareness as part of the return you earn.
