Investment Funds
What are they?
When investing funds through a financial institution, you should take into consideration a series of factors involving not only the institution itself but also the investment option.
Reputation and solidity; transparent relationship with customers; management capacity and risk control; and market knowledge and financial solutions expertise are not only fundamental pillars to manage your funds but also to seek the best investment options.
First of all, you need to know the funds’ categories, their characteristics and differences, as well as the assets that will make up the funds’ portfolio, which will provide some indications, such as estimated profitability, risk and volatility. The investment fund industry is sectorized by the Brazilian Securities and Exchange Commission (CVM), the body responsible for disciplining, standardizing and supervising the operations of several market players in basic categories such as:
I – Fixed-Income Funds: The main risk factors of funds classified as “Fixed Income” should be the variation of interest rates, price index, or both, through a portfolio composed of public fixed-income securities (LTFs, LTNs, NTN-Fs, NTN-Bs, etc.) or private fixed-income securities (bank deposit certificates, treasury notes, debentures, etc.). Funds classified as “Fixed Income” will have at least eighty percent (80%) of the portfolio composed of assets directly related, or synthetized via derivatives, to the risk factor naming this class.
II – Foreign Exchange Funds: The main risk factor of funds classified as foreign exchange is the variation in foreign currency prices, or the variation in foreign exchange coupon and, therefore, at least eighty percent (80%) of the portfolio will be composed of assets directly related, or synthetized via derivatives, to the foreign exchange risk factor.
III – Multimarket Funds: This type of fund aims to provide shareholders with the possibility of obtaining earnings in the medium and long terms, higher to the variation of the CDI rate – CETIP in most cases, through a diversified portfolio composed of several types of assets. With a more balanced portfolio, it is possible to seek greater hedging conditions against negative variations in a certain market. This fund category usually has a comprehensive investment policy, involving a number of risk factors; however, without the commitment of focusing on any specific factor.
IV – Equity Funds: The main risk factor of equity funds is the variation in share prices. In this sense, at least 67% of the fund’s equity will be composed of shares traded on the stock exchange or on organized over-the-counter market. The remaining 33% may be invested in any other types of financial assets, such as government bonds, private securities and others.
SulAmérica Investimentos offers several types of management services through mutual or exclusive funds, such as those presented above.
See below the main advantages of investing in mutual or exclusive funds:
Mutual Fund
- Dilution of fixed costs, reducing impacts on profitability;
- Expert team to monitor and manage funds on daily basis; and
- Possibility to diversity investments.
Exclusive Fund
- Consolidation of profitability information in a single share;
- Fund set up and managed based on the customer1s objectives;
- Tax optimization through the lengthening of investment terms, compensation of possible losses and exemption of financial transaction tax (IOF).
Learn about our investment funds in “Choose your fund”.