After many years on the market, this is still the most frequent question and the most appropriate answer is “it depends.” It depends on your goals, your profile and how much you have to invest. But at first, a good candidate for better investment is the investment fund.
In general, the portfolios of the funds consist of public bonds, private bonds or shares of the local market. You can also buy the bonds directly, but deciding for a public or private, pre, postfixed, or inflation-indexed bond is not a simple task. Private securities are exposed to risk and in the case of stocks, Petrobras, Vale and steelmakers are no longer a guarantee of good profitability. The market changes and in the last five years it has changed a lot. Basic materials are giving turn to other sectors and companies in a new cycle and the performance of a stock portfolio depends on a good selection.
Achieving efficient diversification that minimizes risk and increases profitability is work for qualified, experienced professionals using advanced technology and rigorous control systems.
With so many possible combinations, the fund manager and his team of economists and analysts determine the portfolio arrangement. In this team there are also the operators who execute the purchase and sale orders.
Investment funds can also operate in the foreign exchange market, a variety of currencies that flee from the best known dollar and euro. Since the price of a currency is a reflection of the country risk, the differential between the real domestic and external real interest rate and the commodity price, the currencies are high risk investments, but can be translated into large returns.
With funds it is also possible to invest in commodities – from maize to gold – and in the most diverse strategies with derivatives to potentiate gains or protect from unexpected variations.
Derivatives, at the outset, were mostly used to protect producers, suppliers, exporters and importers from times of great fluctuations, but they were then used by investors for higher returns. Although available to individual investors, they are most efficiently employed by financial and business professionals.
This is the simplest and most traditional option, but it is far from good investment. In addition to the low profitability, did you know that withdrawals outside the anniversary date cause loss of profitability accumulated in that period? For example, if you apply $ 5,000 on the 10th of a month and redeem on the 1st of the second month of the application, it will only pay for the first month’s profitability. Profitability is only guaranteed for birthday applications.
One advantage of savings is that the balance of up to two hundred and fifty thousand reais is guaranteed by the FGC (Credit Guarantee Fund) in case of insolvency or bankruptcy of the institution. The Income Tax exemption for this investment is another advantage, but is not it better to pay tax and have higher profit? Any more base point makes a difference in the long run – you can trust.