Brazil’s best and worst investments in January
RIO DE JANEIRO, BRAZIL – The “High Duration – Investment Grade” fixed income funds led the ranking of January’s best fixed income investments, with a yield of 1.15%.
These funds aim to seek returns with a weighted average duration of the portfolio equal to or higher than determined by the IMA-Geral (an index representing a public debt portfolio). At least 80% of net assets are allocated in federal government bonds or low-risk assets in the domestic or foreign markets.
The worst fixed income investment was the Tesouro IPCA+ 2045, which fell 11.71% in the period.
The bond was impacted by the so-called mark-to-market. Faced with a scenario of persistent fiscal uncertainties, investors’ perception is that the risk has increased, which is reflected in the asset’s price: future interest rates soared and reflect the rate that the market believes will be needed to contain inflation. Thus, the bond’s current value has dropped.
VARIABLE INCOME
Among the variable income investments, “Active Index” category stock funds led the ranking in January, with gains of 3.72%, below the Ibovespa’s performance, which registered a high of 6.98%.
The worst performance was in the “Foreign Investment” category, down 4.86%. These funds reflected the negative performance of the American stock market indexes. In the month, the S&P 500 depreciated 5.86%.
WHAT TO CONSIDER WHEN INVESTING
For all investments, the advice is to always remember that past profitability does not imply guaranteed future returns. It is also important to note that the investment ranking considers the gross profitability of applications, excluding income tax (IR) and the fees charged by funds, managers, and brokers.
A 15% income tax is charged on investments in stock funds. In short-term funds, the rate is 22.50% for redemptions within 180 days and 20% for redemptions after 180 days. In the other fund categories (long term), taxation is regressive, where the rate varies between 15% and 22.5%, depending on maturity.
Government bonds are also taxed according to the regressive income tax table. Savings accounts are not subject to income tax.
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Brazil — Live Market Board
+1.20%
187,366.84
+1.20%
65,010.39
+0.44%
11,315.26
-1.14%
3,075,982
+1.36%
2,569.47
+0.15%
59,620.96
+1.05%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 187,366.84 | +1.20% | +21.85% | 185,147.15 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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