Examples of financial assets: the best options
Discover some examples of financial assets and see how to increase your wealth in a more profitable way!
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Financial assets help your financial wealth grow over time. They are not tangible things, like a car or a piece of jewelry, but they generate income and can be traded on the financial market.
However, despite the importance of this term, many Brazilians still do not know what financial assets are and what they mean in practice.
To help you understand more about these investments, we have prepared this article for you! Continue reading to find out more.
What are financial assets? And what are examples of financial assets?
Financial assets are intangible assets, such as public and private bonds, shares and bank deposits.
They represent a value, which, by the way, is derived from a contractual claim to which they correspond.
By definition, financial assets are more liquid than intangible assets. But what does that mean?
This means that assets can be converted into cash more quickly than a car or an apartment, for example.
They are not assets that you can physically touch, as they exist only in digital form. Assets receive a value that comes from the supply and demand of the market in which they participate.
What are the types of financial assets?
We can divide financial assets into three types:
• Income generation: These are assets that generate income for the investor who owns them, whether in the form of dividends or even rent receipts.
• Capital growth assets: generate good returns, especially in the long term. They have high profitability and, therefore, higher risks.
• Financial reserve: They are financial reserve assets to save money. The objective is to offer an emergency reserve to the investor and therefore, they are safer and have liquidity. Consequently, low profitability.
What are the main examples of financial assets on the market?
Now that you know what financial assets are and their characteristics, it's time to learn about the main examples available on the market.
They are found in two categories: fixed income (known profitability at the time of application) and variable income (unpredictable profitability and high fluctuation).
See some of the most common examples on the market:
1. Actions
The shares represent the smallest portion of the organizations' share capital.
This means that when purchasing a share on the Stock Exchange, that is, a paper, the investor automatically buys a piece of the organization and gains the right to have a share in the profits.
But unlike fixed income assets, stocks are completely subject to market fluctuations.
Furthermore, shares are adjusted according to the supply and demand of investors.
2. CDB – Bank Deposit Certificate
CDB is a fixed income investment issued by banks.
As it offers a more interesting return than savings, CDB is highly sought after by investors.
Banks issue the fixed income security and the interested buyer will transfer the money to the financial institution in question.
The negotiation is advantageous for both parties involved. For the bank, the financial resources make it possible to offer a series of banking products, such as loans, for example.
For the investor, the CDB is also a good deal. After all, he will receive the money invested with interest.
3. LC – Bills of Exchange
Bill of exchange, or simply LC, is a fixed income security similar to CDB.
The difference between the two is that the CDB is issued by banks and the LC is issued by a financial institution.
It works like any fixed income investment: you lend to the financial institution and in return, in addition to the amount borrowed, you will receive remuneration on the date defined at the time of the investment.
The investment period for Bills of Exchange varies a lot, but is usually between two and seven years.
To increase the yield at maturity of the security, the best option is to hold the asset for the entire expected period.
The Bill of Exchange is guaranteed by the FGC (Credit Guarantee Fund).
4. LCI and LCA
The LCI (Letter Real Estate Credit) and LCA (Agribusiness Credit Letter) They are fixed income investments exempt from income tax, which usually guarantee significant financial returns, especially when compared to savings.
From the investor's point of view, there is no difference between the LCI and the LCA, as what really changes is the backing of the paper. How so?
Well, while LCI is focused on the real estate market, LCA is focused on agribusiness.
5. Direct Treasury
Tesouro Direto is a National Treasury Program developed in partnership with B3, with the objective of selling federal public bonds online.
It is an excellent investment alternative for those who have a more conservative profile, value security and cannot (or do not want to) make large investments.
By the way, did you know that the minimum amount to invest in Tesouro Direto is just R$30.00? As you can see, it is an extremely affordable option for individuals.
6. ETFs
Exchange Traded Funds (ETF) are passively managed funds created with the objective of investing in a portfolio of shares that seek to replicate the portfolio and profitability of financial indexes.
They are considered highly liquid financial assets.
7. Investment Fund Shares
A share is a fraction of an investment fund. The sum of all shares acquired by investors results in the equity value of a fund.
In other words, the value of the share is the result of dividing the fund's net equity by the total number of existing shares.
This means that when investing an amount in a fund, the investor is actually acquiring a specific number of shares, the value of which is determined daily.
The level of risk depends on the option chosen.
Conclusion
Knowing the main examples of financial assets is very important for any investor, whether they have a more conservative, bold or moderate profile.
The best option is to diversify your financial assets and, of course, balance your gains between the short, medium and long term, according to your profile and your main objectives!
