Wanna be part of the next big tech boom? Nedbank has the ‘how’ and the ‘who’

1 min read
AI Investment tool
Image: Pexels

Nedbank has launched a new investment product called the Nedbank Artificial Intelligence Equity Linked Note.

This product allows individuals to invest in some of the world’s top technology companies that are leading the way in artificial intelligence (AI).

Artificial intelligence, or AI, is a technology that enables machines, like computers and robots, to perform tasks that usually require human intelligence. These tasks include learning, reasoning, problem-solving, and even understanding language. AI is becoming more and more important in our daily lives, powering things like smart assistants (such as Siri or Alexa), recommendation systems on Netflix or YouTube, and even self-driving cars.

Read: The rise of AI in insurance fraud: fake pics for false claims

How does this new investment tool work?

The Nedbank Artificial Intelligence Equity Linked Note is linked to an index called the Solactive Artificial Intelligence Selection PR Index (SOAISPR Index).

An index is a way to track the performance of a group of companies. In this case, the SOAISPR Index tracks 10 global tech companies that are doing significant work in AI. These companies are from various countries, including the United States, Australia, China, and Sweden.

Past performance and future potential

The SOAISPR Index has done very well in the past. For example, from the end of March 2023 to the end of March 2024, the index went up by 32.07%. Over the past five years, it increased by 165.85%. However, it’s important to remember that past performance does not guarantee future results.

Features of the new investment tool

Grant Meintjes, an executive at Nedbank Private Wealth, says that this new investment product is designed to give people a chance to invest in AI companies, which are expected to grow significantly in the future.

Here are some key features of the Nedbank Artificial Intelligence Equity Linked Note:

  • Maximum Return: Investors can potentially earn up to 51% over a 3.5-year term.
  • Capital Protection: This means that if the index doesn’t fall by more than 51% at the end of the term, investors’ initial money is protected up to 50%.
  • Rand-Based: The investment is in South African rands, making it easier for local investors to manage without worrying about currency exchange rates.

Investing in this note gives people a chance to be part of the booming AI sector without having to directly manage investments in foreign currencies or stocks. It also offers a way to diversify, which means spreading investments across different areas to reduce risk.

How to invest

People interested in investing can apply between May 13, 2024, and June 7, 2024. The investment will be listed on the Johannesburg Stock Exchange on June 24, 2024.

Nedbank’s new AI-linked investment product offers a unique and exciting opportunity for South Africans to invest in the future of technology. With the potential for high returns and the security of capital protection, it stands out as a significant innovation in the financial market.

Previous Story

Bridging the digital skills gap in Africa: big tech TikTok steps in

Next Story

WATCH LIVE: Samsung Galaxy Unpacked 2024 in Paris

Latest from Business