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Know how much does 100 reais yield in fixed income? is the first step to starting investing in these products intelligently. Understanding how this type of investment works is essential, especially if you want to take full advantage of its profitability. Check it out below. 

How much does 100 reais yield?

Brazilians have always had a relationship with fixed income, especially those who want to start investing. After all, thanks to the high interest rates at the time, the returns obtained were high. 

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However, even though this scenario has changed in recent years due to the Selic rate, fixed-income products are still preferred. That's why it's important to understand how this market works. 

Currently, with the Selic rate at 12.75% per year, Fixed Income is providing returns of up to 1% per month. This makes people wonder: how much does 100 reais yield in fixed income?

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Money can open doors for people and, depending on the investor's goals, it is possible to live on a guaranteed income from investments. Fixed income is an asset class that offers this option. 

What is Fixed Income?

Fixed Income, as its name suggests, is a class of investment where the return is set at the time of the transaction. In other words, when the investor buys a bond, the return and maturity date are defined on the spot. 

When an investor obtains a fixed-rate bond, for example, which pays a return of 6% per year, he will receive the agreed yield on the day of maturity. But in order to receive the full amount, you need to keep the money in your account until the end date.

However, when the bond is post-fixed and linked to the CDI, investors cannot know exactly how much they will receive at the end of the period. On the other hand, the rate of return is linked to the CDI.

It's worth noting that by investing in a fixed-income security, investors are buying a "debt". This is because the shareholder is basically lending money to the issuer of the bond, and receives the amount plus interest afterwards. 

How fixed income works

In short, in order to understand how fixed income works, it is essential to know the main characteristics of this type of investment. In this sense, it's worth getting to know them, especially to increase your knowledge of the subject. Check them out below:

  • Security: Securities are divided into public and private. Public bonds are the safest investments in Brazil. On the other hand, private bonds are guaranteed by the FGC. The FGC guarantees the security of the investment up to R $250 thousand per CPF or financial institution;
  • Taxation of Fixed Income: Most Fixed Income securities are taxed by Income Tax and IOF. However, there are some exceptions, such as CRI, CRA, some Fixed Income Fund securities and Incentivized Debentures;
  • Investment term: Fixed income securities come in a variety of types. In this sense, it is possible to find investments on the market that can be redeemed at any time, but it is difficult to find options with very long terms;
  • Remuneration on Fixed Income: Last but not least is the remuneration on Fixed Income securities. Although the rate of return is not fixed, the rules on remuneration are defined in advance in the contract. 

It is divided into three categories: fixed interest, post-fixed interest and hybrid fixed income. This type of investment tends to suit all types of investors, from beginners to complex ones. 

How CDI, Selic and TR yield

Before starting to invest in fixed income, people often wonder about the yield. The truth is that the conditions and the return have variables, such as the paper, the term and the issuer. 

The Selic rate is the basic rate for the Brazilian economy, with a target set periodically by the Monetary Policy Committee. This rate serves as a benchmark for the government to remunerate investors who buy debt securities, but not only that. 

Some of the investments have the Selic rate as a direct reference for remuneration. Poupança, for example, is currently yielding 70% of the Selic rate for the year. The same is true of the Selic Treasury, a public bond that pays the basic rate and a small increase to investors. 

The CDI is another important reference in Fixed Income securities. It is represented as the average interest on short-term loan operations carried out daily by the financial institution. 

The Reference Rate is the third common reference in Fixed Income securities. It corrects, for example, the yield on savings accounts and calculates the average of fixed-rate CDBs. 

What is the best monthly return

There are various types of fixed income available from as little as R $100.00, such as CDB, LCI, LCA, among others. Investors should be wary of long-dated Treasury bills, as volatility can be frightening. 

Bonds with a longer maturity date offer investors higher returns. However, when investing in risky securities, it is important to diversify and allocate little by little. 

In the case of CDBs, the average return is around 12.65% for the year. On the other hand, some securities with longer yields can yield up to 120% a year, as long as they are based on the CDI. 

How to invest little and earn a lot? Is it possible?

Most people start investing with the thought of becoming rich. In fact, some companies often use this dream and create advertisements so that people use their resources to achieve good returns. 

However, before you start investing, it's important to save as much as you can intelligently. Also, don't expect big gains straight away, as the journey will be long. 

Investors who want to make a lot of money straight away tend to take more risks, which can lead to significant losses. For this reason, be careful and study the best investments before you make your transactions. 

Another important point is to diversify your investments. That way, even if the choice isn't successful, the investor will be safe.

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