I believe that a lot of the people that invest in actions in Brazil do it through funds. And unfortunately, the vast majority of this majority do so through bank funds (BB, Itaú, Santander, Caixa, Bradesco).
The Brazilian has not yet learned that investing by the bank is very expensive and ineffective, rates are very high and the bank funds portfolio is poor (some have funds that invest only in Petrolixo and Vale, and astonish, they charge 2% a year to Other rates). If you invest only by a bank, kindly open a large brokerage like XP, Rich, Now, Clear, Easyinvest or something. NEVER INVEST by banks if you want to preserve your money.
This post is of public interest, so here is how to consult where a fund invests (some are confidential, others release the information to CVM after 6 months). To consult the FUND that you want to see, click the link below. Write the CNPJ for the fund or the name of the fund to complete the search. Click the green box in the center of the screen to type.
For you to have an idea, I saw a Green Fund advertisement on Bastter. Green is a very good asset and funds rise up lot lately, but we will see near where the background GREEN AM ICATU PREVIDENCIA FIC END PREV invests? Once you have found the background, click on “Portfolio Composition”.
See, friends, you have a “smell” of American stores in the background. Then you have 6 + 18 + 60 + 7.3% = 91.3% only in Treasury Bonds. Is it worth paying someone to buy Treasure Direct for you when in fact you could do it yourself in less than 5 minutes? The fund ICATU MASTER PREVIDENCIA quoted charge you incredible 2% per year to buy Treasury Direct for you.
Understand one thing, if you pay 2% per year of administration fee in a fund, that means that in 10 years, the administration will have eaten 20% of the fund’s equity, of its equity. THAT’S Many things !!! LOTS, MUCH THING !! These high rates take me seriously, a rate of 0.5% per year would be very expensive. Really, do not accept anything above 0.5% per year. Not worth it. Investments, CARE COSTS!
Let’s take another example:
You Banco do Brasil customer enters the site and looks for a stock fund to invest and is faced with this:
BB SHARES BB INVESTMENT FUND
This is a fund sold and distributed by the Bank of Brazil, with OF 1.5% YEARLY MANAGEMENT FEE, which means 15% in ten years.
Based on that VERY VERY high rate they invest in?
That’s right friends, 99.76% of the fund’s money is invested simply in the bank’s own stock. The bank charges you 15% of its equity in 10 years to invest in its own shares when in fact, you could register with an independent brokerage firm and directly buy these BBAS3 shares on their own and thus save 15% of their equity in 10 years Invested in this fund.
“Ah frugal but this is so in the face right?”
Personnel, there are 175.7 million reais invested in this fund. That gives 2.6 million annual fees paid by the quota holders to the bank. And that money comes right out of their pockets. TWO HUNDRED AND THIRTY-THOUSAND REAL THOUSANDS PER MONTH! Of course, for BB this is a mix, but for YOU? Not for me.
So what is the message of this post:
1 – If you want to invest in some fund, first investigate where it invests in the link that I glued there above.
2 – Read the bottom sheet and research fund management fee. For me ANYTHING above 0.5% per year is CARESSIVE! There are many people who, through misinformation, accept to pay 2% a year or even more (IT IS UNACCESSIBLE).
3 – If you want to invest in stocks, study companies, set up your stock portfolio (the companies you plan to buy), STUDY one share per month (for example read the company’s annual balance sheet last year) and see if it’s worth Worth entering the company.
4 – FIXED INCOME FUNDS, ALL OF THEM, have the “come quotas” of the state gang, which is nothing more than the ROB of 15% of the fund’s profit every 6 months. That’s right, the government comes and STOLE 15% of the fund’s shareholder profits each semester, beautiful, right?
5 – Avoid FIXED INCOME funds for the reasons above. If you want to invest in FIXED INCOME without fear and without eating, prefer the SELIC TREASURY that is a very conservative title and has daily liquidity. All you need to do is register with a brokerage firm that allows you to invest in Treasury Direct.
6 – If you want to invest in stocks but do not want to study, you can choose to buy an ETF that is nothing more than a stock and with a very cheap rate such as the GDP11 that is sold by Itaú. Check here about it at this link: ETF PIBB11 This ETF tracks the index IBrX50 negotiating the 50 major and most liquid of the Brazilian stock exchange. Overall it follows the entire stock market at once.
These are the most precious tips.
Big hug and good investments,