Investing My Money [Part 11]: How to Invest in an Investment Fund? – Knowledge Area – Improve Your Financial Health – Joseph K.

 

 

Good afternoon, my friends! Following up on the previous text, where I explained what an investment fund was, today we will take a step-by-step approach so that you can buy shares of funds in the main brokerages in the country. If you missed the text last week, here it is,

 

Let’s see how to buy quotas of investment funds using as an example three brokerages: Easynvest, Rico and XP.

Come on!

Creating an account with a broker

Creating an account with a broker

 

Here in this post I imagine that you have already created account in some broker (s). If you have not already done so, I recommend you take a look at these two previous posts:

 

In the first my focus was fixed income, in the second my focus was variable income. But in any case, the leading brokerage firms resell various fund shares.

 

Accessing the Funds area

Accessing the Funds area

 

At Easynvest

 

Easynvest lives up to its name and is easy enough. Just click on Investment Funds. However, it has few funds.

In rich

 

The area of ​​the rich is also very quiet to access, and has a wide variety of funds.

In XP

 

XP has a lot of background, but it gives some complicated fools on the page. But finally, nothing dramatic: in the area of ​​investment funds click on “Available Funds”. Then open a window for “Funds List” and another window for “Returns”. So you can compare the funds better.

 

In addition, XP has a legal tool for comparison of funds. Just click on “Compare the bottoms” and tweak the tool, which is not too difficult to tinker with.

Start filtering

Start filtering

Minimum application

Filtering your basics will already save you some time: filter by minimal application and see what fits your budget. There are funds with minimum application of R $ 500, R $ 1,000 … but they are exceptions in the market.

At Easynvest and Rico it’s easy to filter by minimal application. Already in XP you will have to stay tasting manually.

Degree of risk

 

Brokerage firms usually already display the funds with some indication of their degree of risk. They usually put some color on the side of the name of the fund so you can see how risky it is.

Remember that the higher the risk, the more return you expect to get. The question here is: how much are you willing to risk losing?

This degree of risk has a lot to do with the type of fund you are going to invest. See below the main categories.

The Fund Categories

The Fund Categories

According to Anbima (Brazilian Association of Financial and Capital Market Entities), the funds are divided into four main categories:

Fixed Income

They are funds that only invest in Fixed Income. If you do not know what Fixed Income is, read this post here.

Thus, they tend to be less risky, and are generally exposed to the risk of interest and inflation variation.

Actions

They are funds that invest more than 67% in Variable Income, that is, they invest mainly in shares.

Of course, they are at greater risk, and may try to replicate only one index (such as the Ibovespa), or they can be active, seeking sharper results.

There are several subtypes of stock funds, such as funds investing in the same economic sector, funds that invest in dividends, funds that focus on companies abroad … or free funds that use varied strategies to make a profit.

Multimarkets

Here is everything! Multimarkets is as the name already says: several markets, various operations are allowed.

Despite this freedom, some funds are classified according to their main strategies: funds that keep an eye on macroeconomic developments, trading funds (those that focus on short-term opportunities), long & short funds, interest and currencies, exterior

Foreign exchange

They are funds that bet on the movement of foreign currencies. They have more than 80% of their investments invested in things related to the euro or the dollar.

These in particular have done very well with the bullish move of the dollar last year!

For more specific descriptions and techniques on fund ratings, you can access the Anbima Fund Classification Guide.

past performance is no guarantee of future profitability

 

Obviously you have seen very good returns between the funds and must have looked for the one that gave the most. You can find some cool things, like twenty-one-year earnings per year, without having to worry about looking at the homebroker all the time …

But then, will the fund manager hit the fly again?

Getting these high returns in times of crisis in the financial market is not for everyone, and it somehow shows that the fund manager was a competent (and lucky) guy.

But do not rely solely on this information to choose a fund! Therefore…

… know your product!

... know your product!

Read the Blade, Disclosure Material and / or Regulation! You must have filtered enough and have few options at hand.

In the slide or in the material of publicity you will find summary information on the profitability and in what the fund can apply. In addition, there may be feedback from the manager on the fund’s strategy.

Even if you do not understand it all, take a look. It does not hurt at all.

Apply!

 

Now that you have chosen, just click apply! Ready, simple like that. Remember to take a look at your investments from time to time, and keep an eye on new business opportunities.

Also, you do not need to invest in a single fund! How about diversifying? Apply a little on a stock fund and a little on a foreign exchange fund? Combine your portfolio of dividend paying stocks (the one you’re setting up for retirement) with a fund with overseas investment?

It all depends on your goals and how much you are willing to take risks.

But that is not all!

 

There are some nice legal funds called Real Estate Investment Funds . Have you ever thought about having a property and – every month – receiving money with rent? Well, that’s what we’re going to talk about next week.

Did you like the theme? Do you have any questions, criticisms or suggestions? Talk to us in the comments!

A hug, a good holiday and even more!

 

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