Brazil has the most profitable fixed income in the world

2023-04-20 11:00:21

Accumulated inflation in the last 12 months is 4.65% and the economy’s basic interest at 13.75% makes Brazil the country with the highest real gain in the world. This means that fixed income is the most profitable, both in funds and in public and private bonds.

Even though it is not known for how long the conditions will be favorable to have a profitable fixed income, since the Central Bank may choose to lower the Selic rate in the coming months, the objective is to take advantage of the wave and surf on the good yields.

Comparing with the big economies, only in 8 countries the interest rate exceeds the inflation. So much so that in Brazil, the real gain is more than double that of Mexico. As a direct reflection, investments linked to interest, funds and papers have a very lucrative real gain.

Source: Savings Club

Fixed income champions

The 10 champion funds have yields close to each other due to the almost identical composition of their portfolios. For example, between Selic Treasury and IPCA Treasury, what changes is only the percentage of each one and also the variation of Prefixed Treasury.

In addition, they are simple class funds, that is, composed of Treasury securities with practically zero risk, following the performance of the Selic. With high liquidity, most of these investments allow withdrawals every day.

Of the 75 funds, 53 have been operating for at least 12 months and all have real gains above 5.29%, as:

27 have yields greater than 13% in 12 months;
10 yielded between 12.96% and 12.01%;
14 yielded between 11.99% and 11.08%;
2 yielded in the 10% range (10.46% and 10.19%)

Is digital fixed income profitable?

If fixed income is a good deal at the moment, is it also worth investing in digital fixed income? Following the same precepts, it is a category of investments within the universe of digital currencies.

See insights from the live we did with Caio Alberconi, MB specialist, on Digital Fixed Income.