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In recent years, there has been a considerable increase in investment by individuals in variable income securities. According to data from the Brazilian Stock Exchange, around 35% of new investors have invested in these securities. 

Investment in Equities grows 35% among Individuals 

According to figures announced by the Brazilian Stock Exchange, the number of individual investors in equities has risen by 35%. The index marked a major advance, since in the same period last year, there were only 3.3 million investors, and today this figure stands at 4.6 million. 

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According to the same survey, there has been an increase in investments and values in all types of stock market. A prime example of this is the number of investors in fixed-income securities, which has risen to just over 12 million. 

On the other hand, Treasury Direct is an investment option that 2.1 million individuals invest in. It's worth noting that the index also increased, with a rise of 26% in the third quarter compared to the same period in 2021. 

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According to Felipe Paiva, B3's Director of Client Relations and Individuals, the increase in the number of investors in Variable Income shows that Brazilians are interested in diversifying their portfolios, going beyond savings. 

Variable Income Investments

Variable Income is an investment category made up of financial products and assets. Unlike Fixed Income, investors cannot find out what the return will be at the time of investment, as it is variable. This means that there are no guarantees or forecasts of the amount. 

As the name suggests, Variable Income investments are volatile. In other words, prices can vary constantly over time. And, consequently, affect the performance of your investment portfolio. 

Because of this characteristic, this category of investment is often considered to be high risk for shareholders. While these investments are riskier, the returns obtained are also higher. In addition, profits are usually higher than those of fixed income. 

The reason for this is that there are no interest rate caps. As a result, market volatility will be higher, which will increase the risks of investments and, consequently, the potential for profitability. 

Investors who invest in fixed-income securities are "lending" money to a company or government in exchange for interest. In Equities, on the other hand, shareholders are investing in securities directly or indirectly. This happens with people who buy shares in companies, for example. 

Types of Equities

Today, investors can invest in a variety of equities, divided into different categories, simple or sophisticated. All options have their own characteristics and risks. Check them out below:

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Shares are traded on the stock exchange. By investing in this method, the investor is guaranteeing a small portion of a company. In other words, anyone who buys a share becomes a partner in the company, sharing in the profits it makes. 

This is the best-known way of investing in equities. There are two ways to profit from investing in shares: the first is through dividends, i.e. company profits distributed among shareholders. The second involves the appreciation of shares on the stock exchange, allowing assets to be sold. 

Real estate funds

Another way to invest in Variable Income is to invest in the real estate market. Normally, the money is used to build or buy properties, which are then rented or leased out in the future. It's worth noting that all the profits from this investment are divided among the shareholders. 

Most people think that Real Estate Funds are Fixed Income securities, since the distribution of income is regular. However, even if this belief exists, this is a type of Variable Income, since the shares fluctuate on the Stock Exchange. 

This way, you can't find out what the return on your investment will be. In addition, there is no guarantee that the income will be maintained for a long time. 

ETFs

ETFs, popularly known as "Index Funds", are funds that replicate the composition of financial indices. The shares of these investments are traded on the stock exchange, just like shares. 

The main aim of this investment is to offer shareholders an alternative to investing in portfolios that are practically identical to market benchmarks. One of the characteristics of this type of investment is its practicality. 

Cryptocurrencies

Cryptocurrencies, considered a recent category in financial assets, are virtual currencies that work like ordinary money. In other words, with cryptos, users can easily buy products and services online. 

In short, they are codes converted into values, without any bank or body to produce or control them. These virtual currencies are protected by cryptography and the blockchain system, reducing the risk of cyber attacks. 

Investors can buy and sell cryptocurrencies, but it is essential to find a responsible broker or company to carry out the transactions. Due to their widespread popularity, these digital currencies have now become a source of variable income investment, as the market is also risky. 

Advantages of Equities 

People who invest in Variable Income want to diversify their investment portfolio. After all, this type of investment is suitable for those who want to maximize their income, going beyond the predetermined market rates. 

In short, as the risk is greater when investing in Equities, the gains are greater. Through this class of investment, it is possible to participate in the profits of a company, assets and various financial funds, seeking to improve the performance of the portfolio. 

Another advantage of Equities is the diversity of bonds and shares to invest in. In addition, shareholders can follow different strategies. By understanding the risks of this type of investment, you can invest consciously and protect your portfolio. 

In addition, shareholders are able to reduce the risk to their assets, since the portfolio will not be concentrated in a few alternatives. It's important to keep the following in mind: all forms of investment are risky, some more so than others, but it's essential to keep your portfolio diversified.

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