Fixed Income

In this modality, the returns are more predictable, for the most part, they do not offer great risks to the investor and can often be redeemed even before the agreed term, although this impacts on their profitability.

CBD

CDB or Bank Deposit Certificates are used by banks to raise funds, as a type of loan so that the institution can provide financing to other people.

Just as a bank charges interest when it lends money to someone, it must also pay interest when it receives a loan of a certain amount from a customer. At the end of the agreed term, the institution pays a percentage of interest to the investor.

Its risk level is low. Therefore, it is recommended for investors with a conservative profile, but its return periods can vary greatly depending on the investment made.

There are two categories of CDBs: prefixed and post-fixed. The first occurs when the remuneration rates are informed at the time of contracting. In the case of post-fixed CDBs, the remuneration may vary according to the indexer contracted, so it is not possible to know the remuneration at the time of contracting, only after the maturity of the investment, which will be calculated by the CDI (Interbank Deposit Certificate).

RDB

The RDB or Bank Deposit Receipts is also a category in which a bank receives loans, however the difference is that in this modality the investor cannot withdraw the amount before the stipulated term.

Like savings, this investment is recommended for conservative investors, as it offers low risk. As for returns, there is also the possibility of choosing between a fixed-term or post-fixed contract.

However, there is always the possibility that the institution will go bankrupt if it is not a solid bank, and the investor may lose the money invested. Therefore, it is recommended to always invest within the Credit Guarantee Fund (FGC).

LCI and LCA

LCI is the Real Estate Credit Letter. It is a Fixed Income investment issued by banking institutions.

The bank will fund activities in the real estate market using the money raised. An annual rate of return set at the time of purchase is provided to the investor.

The second feature of the LCI is that it has a pre-established maturity date. That is to say, at the moment of acquiring the investment, you know beforehand how much your investment will yield up to the end of the contract.

LCA is the Agribusiness Letter of Credit. It is also a Fixed Income security issued by banking institutions, but what changes is the sector in which the investment is focused. In this case, agribusiness activities.

Both are recommended for conservative investors, as they offer low risks and have a defined return at the time of purchase. As for the term, it can vary from one company to another.

CRI and CRA

CRI is the Real Estate Receivables Certificate and consists of an investment used to finance real estate market transactions, as is the case with LCI. In other words, when you buy a security you are lending resources to the security issuer and as compensation, you receive your money back with interest and monetary correction.

The CRA is the Agribusiness Receivables Certificate. It is also similar to the CRI, but with the difference that it is related to agribusiness. Therefore, we can say that it also has similarities with the LCA.

An important point to highlight is that both CRI and CRA are types of investment recommended for those who are already familiar with the financial market and tend to invest higher amounts, such as members of investment clubs or certified professionals.

Regarding the profitability of CRI and CRA, there are three contract options: prefixed, post-fixed and hybrid. As we have already mentioned, in the first alternative it is possible to know how much the investment will yield until the end of the contract, in the second alternative there may be market fluctuations that will affect the profitability.

In the case of a hybrid contract, both the CRI and the CRA can combine part of the income with a fixed rate and also with a part of the fluctuation of some economic indexes, such as the IPCA (Consumer Price Index) and the CDI.

LC

The Bill of Exchange is a Fixed Income security very similar to the CDB, but with the difference that it is issued by financial institutions, instead of banks. As with any Fixed Income investment, the concept is the same: the institution borrows money from the investor and, in exchange, returns the amount with a remuneration on a set date.

The return can be combined with a fixed rate plus the IPCA or linked to the CDI. One of the reasons to prefer this type of investment is that it is possible to find a LC within a period that you want to invest at a great profitability.

For conservative investors, the LC is a good alternative, as it is guaranteed by the FGC, which acts as insurance against bankruptcies or any problems with the company that issued the security.

LF

Financial Letter is a Fixed Income investment that aims to obtain long-term resources (from two years). It is an investment aimed at more daring investors, as its minimum value is R$ 150 thousand, with high profitability (generally post-fixed) and an incidence of the lowest IR rate (15%).

The LF yield is usually linked to the CDI, which, in turn, is a reference index that remains close to the Selic.

Another important feature of the LF is that the investment cannot be redeemed earlier than the date set for due date matures only at maturity. Therefore, if you choose this security, then you need to plan your finances so that, monthly expenses are taken care of, supplementary costs, and income within the next few months or years, so you will not be touched by a lack of cash.

Debentures

The government issues public debt securities to raise resources, but private companies can also issue debt securities to interested parties. These companies invest the money raised in large projects that will yield good results in the medium and long term.

When a debenture is bought, the investor becomes a creditor of the company, and therefore he receives interest on the borrowed resources, just as a bank when making loans to its customers.

However, it is noted that such an act does not make him a partner to the business but only a creditor.

The investor profile of this type of investment may vary since some debentures are risky, whereas others are not particularly risky. Again, an important factor to know is the investment term since these investments would normally be for at least 2 years before they can be redeemed.

Public Securities

These are bonds that the Federal Government issues through the National Treasury. Like debentures, their purpose is to raise funds to finance activities, but in this case public activities, such as education, security, health, etc.

Because they are tied to the government, government bonds are considered low-income, which makes them suitable for conservatives. As for remuneration, it also comes in pre- or post-fixed formats.

Variable Income

In this category, investment types can be much more profitable, but they are more susceptible to changes based on factors internal and external to the country’s political and socioeconomic situation.

Therefore, they require more knowledge about the market and, for the most part, are recommended for investors with a moderate or aggressive (bold) profile.

Stock market

The famous Wall Street, constantly featured in films and series, gives a basic perspective on the stock market even to the most layman on the subject.

This category is extremely sensitive and requires a high level of knowledge, as the same stock may have a high value at the beginning of the day and, at the end, have its value plummeted below expectations.

They are used to capitalize companies. In other words, when you buy a share, you receive an equity stake in the company. In other words, you become one of the owners of the business.

In simplified terms, there are two types of shares: preferred shares (PN), in which the holder does not have the right to vote, but has priority in receiving dividends, and ordinary shares (ON), where the holder can vote on corporate matters at meetings.

Today, there are three categories of stock purchases in the financial market:

Investment Funds

This is when investment funds are related to a group of investors who choose to invest in a specific product or application. The group’s objective is to obtain a financial return, in which the expenses generated by the investment and also all its income will be divided, as is done in a condominium, for example.

Investment Clubs

These are less formal groups and are generally made up of friends or family members. They can have from three to 50 participants. They do not require a manager with CVM certification, only someone responsible for managing the purchase and sale of shares.

Individually

In this category, the person responsible for buying and selling their own shares is the holder, although they can also count on the assistance of accredited professionals , who generally provide access to trading platforms to check costs, manage the account and buy and sell shares online.