Total investment value
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Accounts
Tax-Free Investment
A tax-free investment (TFI) account is a government initiative that encourages South African citizens to save more for their future through certain tax benefits.
You can use a TFI to save for any long-term goal outside of your retirement.
How it works
When you contribute to a TFI, the investment returns earned by your underlying investment in a unit trust grow completely free of local tax and remain tax-free even when you withdraw.
This means that you pay no local tax on:
- Interest or other income
-
Dividends
-
Capital gains
As a result, your investment return will be higher than simply investing in a unit trust, but there are certain restrictions to investing via a TFI account.
Contributions to a TFI are capped at R36,000 per tax year, and R500,000 over a lifetime. Only South African citizens qualify for a TFI.
Why a Coronation TFI makes sense for you
With a Coronation TFI account, you can choose a suitable unit trust from our range to power your investment returns and start contributing from as little as R250 a month, or a lump sum amount of R5,000.
To invest, simply follow our Invest Now application process.
Example
The power of compounding tax free
The benefit of tax-free investment growth can have a game-changing impact on your ultimate savings over the long term.
Our research shows that long-term investing in a TFI account can more than double a similar amount invested in a standalone unit trust fund.
Assumptions:
R36,000 invested per year from birth into a taxable unit trust and a tax-free investment, respectively, until R500,000 has been invested. Investment then grows without any withdrawals until age 65. End values assume the entire amount is invested in the same underlying portfolio, Coronation Market Plus, for the duration of the investment, returning 6% per annum in real terms (historically Coronation Market Plus provided 9.2% real return p.a. since inception, as at 30 September 2025), 5% inflation and marginal tax split between income, dividends and capital growth based on historic average for Market Plus.
What to consider when investing tax free
To help investors make the most of their Coronation Tax-Free Investment, here’s a summary of its benefits and limitations.
What are the benefits?
- Pay no local tax on interest and other income, dividends and capital gains
- Select any unit trust without any regulatory restrictions (a long-term growth-oriented fund may offer the biggest benefit)
- Free to switch or withdraw at any time
- Pay no initial fees or ongoing administration fees
- Open a Coronation Tax-Free Investment for minor children
- Transfer an existing tax-free account from a bank or another investment manager to Coronation free of charge
What are the limitations?
- Only South African resident individual investors (not trusts, companies, etc.) are eligible
- Doesn’t pay out a regular income; interest and dividends earned are automatically reinvested
- No protection against creditor claims
- Cannot contribute more than R36,000 per annum or R500,000 over your lifetime
Funds
What are my investment options?
You can choose to invest in any of our rand-denominated unit trust funds. Your individual fund or combination of funds are not subject to any regulatory limits.
Popular choice
Market Plus
This fund is for investors wanting to grow their tax-free savings meaningfully over the long term. It invests across local and global shares, bonds, property, and cash to capture the best growth opportunities. Its equity bias makes it a suitable choice for investors seeking inflation-beating, long-term growth.
- Invests across shares, bonds, property, and cash, locally and offshore
- Equity-biased for higher long-term growth potential
- Ideal for wealth builders not bound by retirement fund regulations
Risk rating
Minimum investment term
5 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Market Plus
The fund aims to maximise long-term investment growth, at lower levels of risk than a fund that is only invested in shares.
Investor profile
The fund is suitable for investors: Building up long-term capital outside of a retirement fund. Requiring a somewhat aggressive capital growth portfolio. Looking to preserve the purchasing power of their capital over the long term. With a time horizon of five years or longer. The fund is not suitable to highly risk-averse investors
Benchmark
CPI + 5%
Risk rating
Minimum investment term
5 years +
Exposure to growth assets
Maximum: 85%
Annualised past performance (after fees)
| Returns | Fund | CPI + 5% | PEER GROUP AVERAGE |
|---|---|---|---|
| Since Launch (unannualised) | 2,663.3% | 1,030.4% | 1,565.5% |
| Since Launch (annualised) | 14.7% | 10.5% | 12.3% |
| Latest 20 years (annualised) | 12.4% | 10.4% | 10.9% |
| Latest 15 years (annualised) | 11.7% | 10.0% | 10.4% |
| Latest 10 years (annualised) | 10.4% | 9.8% | 8.5% |
| Latest 5 years (annualised) | 16.1% | 9.9% | 13.6% |
| Latest 3 years (annualised) | 19.5% | 9.1% | 15.2% |
| Latest 1 year | 18.6% | 8.1% | 15.0% |
| Year to date | 15.8% | 6.9% | 14.1% |
Global Optimum Growth [ZAR] Feeder
This fund is for long-term investors wanting global diversification and strong, equity-driven growth within a tax-free investment. It invests in Coronation’s best local and international ideas across shares, bonds, property, and cash to capture opportunities worldwide.
- Primarily invested in shares, but can include property, bonds, and cash
- A flexible mandate that adjusts asset and geographic exposure based on value
- Ideal for wealth-builders comfortable with broad discretion in asset and regional allocation
Risk rating
Minimum investment term
10 years +
Try our investment calculator
Click here to see the returns of this fund if you had invested sooner
View fund performance
Invest in this fund
Global Optimum Growth [ZAR] Feeder
The fund aims to maximise long-term investment growth by investing in a globally diversified portfolio with exposure to both developed and emerging markets across multiple asset classes. Our intent is to provide competitive after inflation returns over all five-year periods.
Investor profile
The fund is suitable for investors: Looking for a balanced exposure to both domestic and international assets. Who are comfortable to grant Coronation a wide degree of discretion. Who are in their wealth build-up phase and require little income yield in the short term. Who are able to withstand short-term market and currency fluctuations in pursuit of maximum total returns over the long term. Who intends following a core/satellite approach, using this fund as a core fund.
Benchmark
Composite: 35% MSCI World Daily Total Net Return Index, 35% MSCI Global Emerging Markets Daily Total Net Return Index, and 30% Bloomberg Global Aggregate Bond Total Return Index Unhedged USD
Risk rating
Minimum investment term
10 years +
Exposure to growth assets
Maximum: 100%
Annualised past performance (after fees)
| Returns | Fund | BENCHMARK | OUTPERFORMANCE |
|---|---|---|---|
| Since Launch (unannualised) | 2,613.9% | 1,569.4% | 1,044.6% |
| Since Launch (annualised) | 13.3% | 11.2% | 2.1% |
| Latest 20 years (annualised) | 11.6% | 11.7% | (0.1)% |
| Latest 15 years (annualised) | 13.5% | 12.2% | 1.3% |
| Latest 10 years (annualised) | 11.2% | 9.9% | 1.3% |
| Latest 5 years (annualised) | 7.1% | 10.3% | (3.2)% |
| Latest 3 years (annualised) | 20.7% | 14.7% | 6.0% |
| Latest 2 years (annualised) | 20.2% | 13.2% | 7.1% |
| Latest 1 year | 25.2% | 13.1% | 12.1% |
| Year to date | 18.7% | 8.4% | 10.3% |
Popular funds
See all popular Coronation unit trust funds suitable for tax-free investment
Invest Now
Experienced investors or those who prefer to build a custom portfolio can use our Invest Now process designed to meet every need.
Investment quote
Create a summary of your prospective tax-free investment. The document is useful for comparisons prior to investing.
Our insights
Frequently asked questions
No. But we highly recommend that you remain invested for the long term to get the maximum benefit from both our investment approach and the power of compounding.
A Coronation Tax-Free Investment Account charges no initial, upfront, account, or switching* fees.
Coronation only charges an annual management fee, depending on your chosen fund. For example, Coronation Market Plus charges an annual fee of 1.25% on your investment balance. Each funds’ fees can be found on their respective fact sheets.
Click here to read more about the fees
*While this is the ordinary course of business, Coronation retains the right to apply switching fees or exit penalties under limited circumstances.
Yes. But only if you have not yet contributed the maximum of R36,000 to your Coronation Tax-Free Investment for this tax year. You can add to your investment by logging into your account or contact us toll free on 0800 22 11 77 or clientservice@coronation.com.
You can invest up to R36,000 each tax year (1 March to end-February) and R500,000 over your lifetime. These limits apply to all your tax-free products combined. If you go over the limit, SARS charges a 40% penalty tax on the extra amount.
No. You can take money out of your Coronation Tax-Free Investment at any time, and there is no limit on how much you can withdraw.
But withdrawals don’t give you extra allowance to invest again. Once you’ve used up your annual limit of R36,000, or your lifetime limit of R500,000, taking money out does not free up space to put it back. For example, if you’ve already invested R36,000 in a tax year and then withdraw some of it, you can’t add more in that year without paying penalty tax.
All growth in your Tax-Free Investment — interest, dividends, and capital gains — is completely tax free, as long as you stay within the annual (R36,000) and lifetime (R500,000) limits. If you exceed these limits, SARS charges a 40% penalty tax on the excess.
Yes. Each child has their own tax-free allowance, and you can open a Coronation Tax-Free Investment in their name. A bank account in the child’s name is required for any withdrawals.
Your contributions on behalf of a child may be subject to donation's tax if they exceed the annual allowance. Once the child turns 18, they will have full access to their investment.
Your Tax-Free Investment will form part of your estate and will be paid to your beneficiaries. If the investment was opened for a minor, it transfers into their name once they turn 18.
Yes. You can move your tax-free investment (TFI) to or from Coronation at any time, free of charge. For example, if your TFI is sitting in a bank account but you’d prefer the growth potential of unit trusts, you can transfer it to Coronation (or another provider).
To transfer to a Coronation TFI, simply complete this form and ask your current bank or investment manager to move the funds across.
Yes. Your returns depend on the underlying unit trust funds you choose. The value of these funds can go up or down, which means your investment value may also rise or fall.