Fixed income XP Investimentos – what are the options?
Have you ever thought about investing in XP Investimentos fixed income products? Then you're in the right place!
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Currently, XP is considered the largest securities brokerage firm in Brazil.
With more than 3 million clients, the brokerage firm stands out when it comes to diversity of financial products, valuable content and efficiency.
If you are looking for safer investments, or want to diversify your portfolio, it's time to learn about XP Investimentos' fixed income options.
To find out more, read on.
XP Investimentos fixed income options: discover the available options
Anyone who studies investments and finance has certainly heard of XP Investimentos fixed income products.
To help you understand the options available, we have prepared this article, in which we will talk a little more about the main types of XP fixed income financial products. Check it out:
1. CBD
The CDB (Bank Deposit Certificate) is a security fixed income of the private credit type, offered by banks, which guarantees the investor the return of the amount paid for the security, plus interest at the end of a certain period.
When you invest in a CDB, you are actually lending your money to the bank.
The money raised by banks through CDBs is used to make loans available to the bank's customers.
It is a simple and accessible investment, which attracts the attention of beginner investors, as it offers greater profitability than savings and is also considered safe.
2. Treasury Direct
Tesouro Direto is considered one of the safest investments in Brazil! And it is one of XP Investimentos' fixed income options.
It is a fixed-income public security, issued by the National Treasury, a federal government agency.
Through Tesouro Direto, any individual can “lend” money to the government.
Remuneration can occur in three ways:
• Prefixed
• Post-fixed
• Hybrid
3. Debentures
Debentures are securities credit offered by companies and traded on the capital market.
Its operation is similar to that of public bonds, which are offered by Tesouro Direto.
However, there are some differences, as whoever buys a debenture is lending their money to a company to acquire a new factory or expand its operations, for example.
This type of application is recommended for investors with a medium and long-term vision, as they are normally longer-term securities.
The advantage of this investment is that it offers more attractive returns when compared to other fixed income financial products. However, its credit risk is higher.
4. CRI and CRA
CRI (Real Estate Receivables Certificate) and CRA (Agribusiness Receipt Certificate) are similar fixed income securities.
Both are called securitized securities. In case you didn't know, securitization means transforming receivables into securities that can be traded by investors.
CRI is the acronym for Real Estate Receivables Certificates, that is, they are securities backed by the real estate market.
The CRI investor helps to finance the real estate market by anticipating the credits that are received by the sector.
As you already know, it works in a similar way to the CRA.
However, the CRA represents the promise of a future payment to the agribusiness sector.
The advantage of these two types of investments is that they are exempt from income tax and IOF (Tax on Financial Operations) for individuals.
5. LCI and LCA
To make it easier for you to understand LCIs and LCAs, we will talk about the differences between this investment and CRIs and CRAs.
The first difference is related to the issuance of these financial products.
While thes LCIs and LCAs are issued by banks, CRIs and CRAs are issued by securitization companies.
The second difference is that LCIs and LCAs are protected by the Credit Guarantee Fund, unlike CRIs and CRAs, which do not have this protection.
And now that you know the differences between these two types of investments, let's talk about what LCIs and LCAs are.
Well, we are dealing with Real Estate Credit Letters and Agribusiness Credit Letters.
From an investor's point of view, it doesn't make much difference whether you buy an LCI or LCA bond, unless you want to invest specifically in one of these sectors.
These two investments are highly sought after by those who want to avoid fees and taxes, as both are exempt from income tax, unlike CDB.
6. LC (Bill of Exchange)
Contrary to what the name suggests, Bills of Exchange have nothing to do with foreign currencies, such as the dollar.
LCs are securities that financial institutions issue to raise funds from their investors and lend to customers.
This means that when you invest in a bill of exchange, you are lending your financial resources to these institutions.
In return, you will receive the money invested plus interest.
It is important to remember that it is not possible to withdraw the money before the maturity date of the Bill of Exchange.
Those who invest in Bills of Exchange must pay income tax on the profitability, and if the investment is made within 30 days, IOF will be charged.
7. DI Funds
DI funds invest at least 80% of the portfolio in federal government bonds, in low-risk assets or in fixed-income investment shares.
Profitability follows the CDI, the rate at which banks lend to each other.
And the CDI follows the Selic, which is the basic interest rate in the economy.
The advantage of DI funds is that they guarantee profitability even in the short term. For this reason, they are recommended for those who want to create an emergency reserve.
Managers who set up a fund of this type mainly select post-fixed fixed income securities, in which returns are subject to changes in the CDI or Selic rate.
Conclusion
Now that you know which are the best XP Investimentos fixed income financial products, it will be much easier to create an emergency reserve and make your money grow.
If you want to know more about fixed income, take the opportunity to read our main content on the subject by clicking here.
