After discovering your investor profile, it’s time to keep an eye on the types of investments. But first, to help you understand how they work, check out a mini glossary with the basics of this universe.
- Compound interest: application of interest on interest. This means that earnings are calculated on earnings from all previous periods and not just on the initial amount applied.
- Interest rate: the percentage of interest an investment earns;
- Risk: chance of an investment generating a loss.
- Liquidity: ease of redeeming the investment. While some can only be redeemed at maturity (low liquidity), others can be withdrawn at any time (high liquidity).
- Profitability: the ability to return an asset, that is, how much you will earn with the money invested in a financial product.
- Term: maturity date of an asset, date on which the investment ends and the money returns to the investor with all earnings.
- Contribution: the act of investing an amount of money in a financial product. If it is an investment made every month in the same investment, it is called a monthly contribution.
- Fees: amounts charged by financial institutions for the administration, management or maintenance of the investment. Some assets are tax-free, some are not.
- Volatility: how much the behavior of an application can change. Low volatility means that an asset is more stable; high volatility means greater frequency and intensity of price changes.
Now that you know the terms most used by investors, let’s go to the types of investments. For those who are starting to invest, it is important to know the main investment groups: fixed income, stocks and investment funds.
In fixed income, profitability is defined at the time of application. In general, this type of investment can remunerate in two ways: following a fixed interest rate or following economic indicators, such as the Selic Rate and the IPCA (Price Index for the Broad Consumer).
The biggest advantage of these assets is a low risk. Another benefit is that investment brokers or banks do not usually charge fees for these applications. On the other hand, the profitability is usually lower than that of bolder investments.
To start investing in any of them, simply create an account at an investment broker. In the case of letters of credit and CDBs, it is possible to invest by the banks themselves, but it is advisable to avoid large institutions, as yields are usually low.
The Treasury Direct is a federal government program that sells government bonds to raise funds to finance its operations. When you buy these bonds, you lend money to the government and get it back with interest at the time of redemption. As it is guaranteed by the National Treasury, it is the safest type of investment on the market.
The form of remuneration depends on the type of bond you buy. There are three modes:
Post-fixed security that yields according to the Selic rate, the basic interest of the economy defined by the Central Bank. It has daily liquidity, that is, it can be redeemed at any time without a loss, even before maturity. Ideal for emergency booking or short-term goals.
Title whose profitability is defined at the time of purchase and remains always the same, without following any economic indicator. When investing in this asset, the investor knows exactly how much he will receive at maturity, since the yield does not change under any circumstances.
It is recommended for those who will not need to handle the money until maturity, as early redemption can lead to losses.
There are two types of Prefixed Treasure:
- LTN (National Treasury Bill): interest is paid only at the time of redemption or maturity.
- NTN-F (National Treasury Note type F): bears semiannual interest, paid to the investor every six months.
Although it seems more interesting at first sight, the NTN-F is only suitable for those who no longer have a paid job and need a constant income to cover their expenses.