• In the name of your children to build up capital funds for future education or other needs.

• In the name of grandchildren for the same purpose.

• In the name of relatives, for instance, a parent who is not able to make meaningful investments for themselves (in which case, a Power of Attorney is required to act on their behalf).

• In the name of people you employ, for instance, a domestic worker.

Building up capital in bespoke accounts for your dependents is an excellent way to make them financially independent later in life and to meet big expenses, such as university fees, medical expenses or capital to start a business. Such investments can be made by initial lump sums, periodic lump sum contributions from time to time and/or regular debit order investments.

The responsible investor, who takes out a third-party investment in the name of a dependent person, has full control of the investment. The Administrator of the investment account will only take instructions from the responsible person and all communications and reporting on this account will be to the responsible person.

The investment can be transferred to the third-party - if they are a minor only when they turn 18 or older - or when a dependent leaves your employ, etc. Such transfer does not involve the sale of assets, which could incur capital gains tax, but merely handing over the responsibility for the investment.

Any investments made for a third-party are registered and recorded in the name of the third-party. However, they cannot have access to this investment, without the permission of the responsible person.

Exchange Traded Funds (ETFs) are ideal for third-party investments. They can be bought or sold in small denominations (ETF securities prices typically range from R2 to R100 per share depending on the product). They are fully transparent and disclose their underlying holdings and Net Asset Values at all times. They also trade on the JSE, so can be purchased or sold at any time through the open market.

ETPs can be purchased through any JSE member stockbroker. However, for small investments and regular debit orders, specialised investment platforms, such as the Satrix Investment Plan or etfSA Investor Plan, provide access to ETPs for small investment amounts - starting from R1000 for lump sums and from R300 for debit orders. Of course, there are no limits on the maximum size of the investments.

• They are listed securities on the JSE, so are tradeable, highly liquid, completely transparent and their prices can be monitored constantly.

• All investors, including minors and third-parties, have ETF securities registered in their name on the central JSE/STRATE/CSDP electronic share registers. Security of tenure is guaranteed.

•   ETFs are subject to the regulations and controls of both the Financial Services Board, under the Collective Investment Schemes Act, and the JSE, under the Securities Services Act. This provides peace of mind for long-term investors.

• ETFs, as listed securities, can be easily dealt with by the Executors of an estate should the authorised representative/responsible person pass on.

• Donations of up to R100 000 per year can be made by a tax payer to, for instance, third-party investment accounts. Donations tax of 20% is only payable on donations in excess of R100 000 per year.

Third-party investors can choose one or more of these and other ETFs, possibly mixing portfolio choices between low and high risk ETFs, to provide very competitive returns for long-term investments.