Do you know, of all the options, what are the safest and most profitable investments?
The most profitable and safe financial investments depend on factors such as the current Selic rate and the desired risk x return ratio.
Since 2016, interest rates have suffered falls, which in turn, affect the profitability of investments. Then, there was a change in the search for more profitable and secure financial investments.
If you want attractive returns, you need to take greater risks. In this case, they can be minimized through good choices.
From this, we have prepared a complete guide with the most profitable and secure financial applications of 2018 for you to start investing right now:
- What are the most profitable and secure financial applications of 2018?
- What are the best equity investments?
- How to invest safely
- More profitable types of investments for the short term
If you have any questions, leave a comment at the bottom of the page.
What are the Most Profitable Financial Applications?
The most profitable and secure financial applications have subjective meanings for each investor, that is, what is indicated for your friend may not be suitable for you.
Choosing an investment only by the rate of return is a very common mistake among beginners.
The decision should be based on solid criteria like:
- Investor profile
- Liquidity (redemption facility)
- Application deadline
- Amount to be invested
- Net profitability (taxes and discounted operating costs)
These factors should be aligned with your objectives as an investor. An example of this would be to invest your money to set up your own business in two years.
Let’s say that you will need R$ 10 thousand. So, you should avoid high-risk assets, because this may delay the achievement of your goal.
In this case, the most profitable and safe investments are those of fixed income with a maturity of around two years.
Another example would be to invest with the objective of reaching the first million. If you have an aggressive profile, it is possible to reduce the time needed for the realization, but the risks will be greater.
Thus, the most profitable and safe investments are those of risky fixed income and those of variable income, such as the shares of good companies.
For you to have an idea, the stock exchange appreciated 26.9% only in 2017. If you had invested R$ 10,000 in January, the return would be around R$ 2,690 in December.
In relation to the CDI, which closed last year at 9.98%, the difference is greater than 16.9%. This is one of the reflexes of the resumption of economic activity and the drop in interest rates.
If Brazil continues at the same pace, it is possible to have even more attractive returns on shares. Therefore, they are part of our list of the best investments in 2018.
Therefore, the first step in identifying the most profitable financial investments is to know oneself.
Another fundamental point is to keep in mind that the greater the possibility of gain, the greater the risk and vice versa.
When talking about more profitable and secure financial applications, one of the most frequent answers is savings. Note that it is at the origin of the chart.
It hasn’t brought good returns to the saver for years. Its current profitability is less than 5.0% per year. Its real gain is only 2.0%, that is, a return of 2.0% above inflation.
A good part of fixed income investments can easily surpass this rate of return, that is, to invest in savings is to leave your money in the lurch.
At the other end of the graph, we have stocks. They offer expressive gains, with high risks. So, if you want to invest in them it is necessary to consider some factors:
- Time to follow the quotes and the market news
- Sufficient equity for profits to exceed operating costs
- Knowledge of the financial market
With these three pillars, you will be able to invest your money with more controlled risks than when you venture into speculation.
Remember that past profitability is no guarantee of future profitability. Therefore, a role that yielded 200% in 2017, has the possibility to return 1.0% this year.
It is not enough to invest in stocks, you need to know how to choose them and have a well-defined strategy.
In the middle part of the graph, there are fixed income investments. Basically, they are securities that loan your money to the issuer, which in turn offers a rate of return.
These rates should be stable in order to bring consistent and advantageous net returns for the investor.
How to Invest in Financial Assets: Bank Deposit Certificate (CDB)
The CDB is a private fixed-income security issued by banks. They use financial funding to finance their activities.
Their profitability can be: fixed-rate or floating-rate. The first is a fixed rate, i.e. you will receive the same return until the maturity date of the investment.
The floating rate consists of the payment of a percentage of an economy index. The most common are the CDI and the IPCA, for example, 120% of the CDI.
One of the advantages is the coverage of the FGC (Credit Guarantee Fund) for amounts up to R$ 250 thousand. So, if the issuer breaks down, you don’t lose the amount invested.
Thus, the CDB can be considered as one of the most profitable and secure investments of 2018.
In addition, the minimum contributions are from R$ 1 thousand.
Note that the two CDBs have results superior to savings, especially for the one that pays income of 118% of the CDI.
So, if you want to have good results in a very safe way, this can be an excellent application for your portfolio.
LC, LCI and LCA – Bills of Credit: Safings and Profit Application
LCIs (Real Estate Bills of Credit) and LCAs (Agribusiness Bills of Credit) are fixed income investments similar to CDB. The difference is that the bills are exempt from Income Tax (IR).
The LCs (Bills of Exchange) are issued by financial institutions. So, the risk of the institution is a little higher.
The LCs, LCI/LCA are great alternatives to diversify your portfolio, because the resources are invested in important areas of the Brazilian economy.
Not to mention that they are guaranteed by the FGC for amounts up to R$ 250,000. Then, the LC risk can be minimized.
According to the results obtained, it should be noted that the LC performed better than the LCI/LCA that do not have rates.
The reason is the profitability rate offered. Bills of Exchange generally yield more because they are issued by smaller institutions.
So, as the associated risk is higher and they need to offer more attractive returns to attract and retain investors.
However, LCI/LCAs are excellent options for receiving tax-free returns.
Experts recommend that the ideal rate of return should be above 95% of the CDI for tax exemption to be advantageous.
The Direct Treasury is a public bond issued by the Government. In recent years, it has gained much prominence in fixed income as one of the most profitable and secure investments.
According to the National Treasury report for November 2017, there are more than 1.7 million registered investors. In one year, growth was 65.1%.
The securities are categorized according to the form of profitability:
- Fixed-rate securities: Fixed-rate Treasury and Fixed-rate Treasury with Semiannual Interest Rates
- Inflation-linked: Treasury IPCA+ and Treasury IPCA+ with Semiannual Interest Rate
- Linked to the Selic rate: Treasury Selic
See the behavior of some of them through our Investment Simulator:
The Treasury Selic is more suitable for all portfolios. This is because it yields exactly the basic interest rate, which serves as a reference for the value of money in Brazil.
It also has low volatility. In case you need to sell it before the deadline, there are no significant losses in the yields.
Besides, the returns are always positive, that is, your money grows continuously.
The IPCA indexed ones are good alternatives if you want gains above inflation and maintain your buying power in the future.
Finally, there are prefixed ones. They are ideal for times when you believe that interest rates can fall even further. Thus, yields will be higher than in the other categories.
These assets are also suitable for situations where you need a specific amount in the future.
IPCA-linked and fixed-rate securities can also be used in the early sale strategy. This is possible because their price varies daily.
In the simulation, the appreciation of both has surpassed 46%. By selling them ahead of time, it is possible to earn a lot of money.
Debentures are credit securities issued by companies in various sectors. They are issued in order to raise funds to pay debts and invest in new projects.
In 2017, these securities attracted the attention of investors, because the other fixed income investments lost part of their profitability after the drop in interest rates.
According to B3, the issue reached R$ 90 billion. The increase was 48% compared to 2016.
Because it is issued by companies, the profitability rate is high and linked to an index. In addition, there are incentive debentures that are exempt from taxes.
What Is The Most Profitable Investment Fund?
Investment Funds are very simple and practical to invest. Basically, they are diversified portfolios of fixed and variable income assets. The composition depends on the profitability focus established by the issuer.
One of the differentials of this application is the condominium system. Then, the quotas have the same values and the costs are diluted among all the quota holders.
Another point is the specialized management. On a daily basis, the responsible manager makes the necessary allocations in order to bring the maximum profitability to the fund.
If you don’t have much time to monitor your investments or don’t have much experience in the market, this can be one of the most profitable and safe applications for your portfolio.
Before investing, consider that there are fees such as administration and performance. Besides, there is no FGC coverage.
So, you should choose Investment Funds from institutions with high ratings. See some examples and their performances:
The results of the simulation show funds with a performance above 2.0% of the CDI. Note that behaviors are different and influenced by compositions.
Before investing in Investment Funds, get to know the assets that compose it, the rates charged and the profitability target established by the issuer.
Stocks are one of the most profitable financial investments. If you have long-term plans or availability to trade daily (day trade) or weekly (swing trade), they can bring excellent returns.
If you are a newcomer to the stock market, the safest options are Investment Funds, Exchange Traded Funds (ETFs) and Recommended Portfolios.
Of course, you can also invest in stocks on an individual basis. However, the risks are greater and the focus should be on the long term.
This way, you can benefit from the appreciation of the quotes and the receipt of the proceeds.
What Is The Most Profitable Investment Short Term?
It depends on how much you have to invest in the short term. If you want to invest with little money, the best option is the Treasury Selic that has daily liquidity.
There is also the option of Short-Term Investment Funds. They are very safe and offer good returns.
CDBs with daily liquidity can be good options. In this case, the minimum contribution is usually above R$ 10 thousand.
The most profitable financial applications are those that fit your investor profile.
If you want to obtain the maximum return within one year, and can withstand some fluctuation and risk, the Investment Funds are the most suitable.
If your objective is to invest in a longer period, the ideal is to build a diversified investment portfolio.
In view of the 2018 events, this will be the best option to maintain good returns and protect yourself from volatility.
Continue to learn about the most profitable investments through these other articles:
How to Buy Treasury Direct with More Profitability Step by Step
Best Investment for 2018 According to New Wealthy Analysts
Better Investment than Savings? See 10 Options
Among the most profitable and secure application options are Direct Treasury Bonds, LCI/LCAs and CDBs.
If you are looking for high returns, debentures and stocks are great assets for your portfolio.
To access the most profitable and secure applications of 2018, the first step is to open your Rico account. Enjoy that you are already here and start investing right now!
Here is a list of the best banking apps for different needs:
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