Every investor knows that they need to diversify their investment portfolio to ensure a higher return on investment and protection against risks. However, many are still unaware of structured operations, a simplified way to obtain these benefits.
This investment strategy is a good bet for those who have money to spare. By purchasing a Structured Operations Certificate (COE), the investor can invest simultaneously in fixed income and variable income, which provides more gains and avoids losses.
Purchasing a COE is also ideal for the current scenario of the Brazilian economy, as projections indicate that the basic interest rate will remain below double digits for a long time. To better understand how uganda whatsapp data this process works, this post will cover the main aspects of this type of investment.
We will present its concept, what is the relationship between return and risks, and what are the advantages, risks and costs of this operation.
The concept of structured operations
These are strategies that use a mix of fixed income and variable income, which leads to greater protection of the investor's capital. This way, it is possible to avoid losing invested money due to adverse scenarios or offset losses.
In order for the investor to participate in this operation, he/she must acquire a COE, which is a security issued by banks. This is a registered security, because the certificate will be registered at the Central de Custodia e Liquidação de Títulos Privados (Cetip). This characteristic (registered security and custody at Cetip) provides extra security for the investor.
The COE has been regulated by the Central Bank (Bacen) and the National Monetary Council (CMN) since 2013. The operation is considered structured because it is outside the standard of other applications.
Guaranteed return on investment and risk protection
The main characteristic of structured operations is that they include fixed and variable income securities in the same investment. This mix allows the investor to limit their losses and gains.
This question will depend on your investor profile. For example: those who are more conservative should opt for a COE that has most of its securities classified as fixed income. Those with a more daring profile should invest in assets that are predominantly variable income.
This means that the investor can choose to keep 100% of their capital protected or determine that 50% be invested in risky assets, thus enabling greater gains.
In this sense, the COE can be structured for any investor profile, as long as the characteristics are respected. This is also how the return on investment and protection against risks are ensured, since, generally speaking, the greater the risk, the higher the profitability can be and vice versa.
The advantages of structured operations
The vast majority of Brazilian investors opt for fixed income. This situation is justified by a very clear reason: the real interest rate has always been very high. Therefore, investments in fixed income have always been quite advantageous because the risk was low and the return was high.
However, this scenario has changed in recent years. The basic interest rate of the economy, the Selic Target Rate, is at 9.25% per year in August 2017. The previous year, it was at 14.25%. This interest rate is also known as the nominal interest rate.