Long-term investments: the best options

The financial world has several different aspects, and among them we can find long-term investments, short term, variable income and much more.

And today we are going to talk about long-term investment, which is an interesting strategy for those who are patient and want to wait to see the results in the future.

It is worth noting that all investment decisions must be made based on a solid understanding of the investor profile and market conditions.

What are long-term investments?

Long-term investments refer to financial strategies in which investors allocate resources with the intention of holding their assets for an extended period, usually from several years to decades.

In this type of investment, people will invest a certain amount of money to be held for a predetermined period of time, with the aim of generating income, so that it can be withdrawn after the period ends.

The primary objective of these investments is to seek gains over time, harnessing the power of compound growth and tolerating short-term fluctuations in financial markets.

It is also important to understand who the target audience for this type of financial maneuver is. The people who most often choose to go down this path are investors who are looking for certain larger financial goals that can make a big difference in the future.

For example, if you want to have a good retirement, or give your children a good education, or if you have a goal of making a big purchase, be it a house or a car, these are the types of people who look for long-term investment options.

5 long-term investment options

As we can see, opting for long term investments can be very interesting depending on your future goals and what your desires are.

And before you get into this, you will need to understand what the best options are and how they work. Let's take a look at some of these options now:

1 – Actions

The actions are one of the ways of long term investments most common and well-known terms in the market. They are probably one of the main and first contacts we have when talking about investment.

Shares represent a share of ownership in a company and give shareholders proportional rights to the company's profits and decisions.

In this type of investment, you can be one of the shareholders, and depending on the company you become a partner in, it can end up generating high profitability, but it is also one of the riskiest in this type of investment.

2 – Investment funds

O investment fund It is a type of collective investment form, which involves more than one or two people.

A manager will manage the resources of different investors in order to invest in diversified portfolios.

The investment funds provide instant diversification as they invest in a variety of financial assets such as stocks, bonds, forex and more.

All of this with the aim of reducing the risks that accompany investments.

3 – Real estate funds

The real estate funds or FIIs are a form of collective investment that brings together resources from different investors to be invested in assets related to the real estate market.

These funds are managed by financial institutions and specialized administrators.

Those who opt for this type of long-term investment invest in several different types of real estate assets, commercial buildings, shopping malls and much more.

As with other investment funds, FIIs are managed by specialized professionals, who make decisions regarding the acquisition, management and sale of real estate assets in the portfolio.

For those who have some passive income, or want to invest without having to buy a property in their name directly, this is a great option.

4 – Direct Treasury

O Treasury Direct It is a popular option for investors with long-term goals, such as retirement, because of its security and predictability.

Tesouro Direto is a form of investment in federal public bonds offered by the Brazilian government.

These securities are issued by the National Treasury and can be purchased by individual investors, providing an affordable and safe way to invest in fixed income.

And within the direct treasury, there are different types of bonds such as the Treasury Selic, IPCA and the prefixed rate, each with different specific characteristics related to profitability and their risk profiles.

The Selic treasury is generally indexed to the economy's basic interest rate, the Selic, which is interesting for those concerned about daily liquidity.

The IPCA Treasury is related to the Broad National Consumer Price Index, which has a good return and protection against inflation.

Finally, the fixed-rate treasury carries a predetermined interest rate from the moment of purchase until the moment you receive the return, bringing more predictability.

5 – CDBs

CDBs are bank deposit certificates, that is, they are fixed income securities issued by banks as a way of raising funds.

This type of investment offers a known interest rate at the time of application or can be linked to different types of financial indicators such as CDI or Selic.

Some CDBs have pre-fixed profitability, meaning the investor knows exactly how much they will receive upon maturity. Others are post-fixed, linked to indicators such as the CDI, and profitability may vary over time.

CDBs can have different terms, from short, medium and long term. Investors can choose CDBs that meet their liquidity needs and time horizon.

CDBs are guaranteed by the Credit Guarantee Fund (FGC) for investments of up to R$250,000.00 per financial institution and per CPF.

This means that, in the event of the issuing bank becoming insolvent, the investor is guaranteed to receive up to this amount per CPF.

In addition, you can have other types of long-term investments such as LCIs and LCAs, CRIs and CRAs, gold, private pensions, investment in companies and many other options that may be interesting to have a good return in the future.

Remember that diversification is key when building a long-term investment portfolio, and guidance from a financial professional can be invaluable in making informed decisions.