Against the backdrop of being bombarded with negative news headlines on the local front, South African investors may be discouraged about finding promising investment opportunities in local equity. In an attempt to avoid potential losses, they may look to invest more offshore. However, we believe there is safety in cheap local equity valuations and that, if careful research is applied, there are many SA stocks that can offer the investor strong potential returns, over and above the risk involved. In this article we look at the risk that is being priced into equity markets currently and which factors we consider most important in stock selection, helping us choose among the many opportunities for the M&G Equity and M&G Dividend Maximiser Funds that have been created by the current conditions.

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