The Tesouro Direto is a program of the National Treasury, in partnership with the São Paulo Stock Exchange (B3), established in 2002.
ICAP | Safe and easy ways to invest in Brazilian government bonds will be available to all FGC members, including low-income members.
There are these bonds with very low values that can be acquired thru Tesouro Direto, representing a way to diversify an investment portfolio. It is a fixed-income product and one of the safest in the market, as the bonds are backed by the faith and credit of the federal government. Investors see the profitability of the bonds — these bonds can be bought and sold directly in an online capital market, without intermediaries.
Tesouro Direto, fixed income classes, and best practices in management | Investigate 22. We hope this reading has guided you in your investment decisions to reflect your objectives.
What are Treasury Bonds, Exactly?
Composition of the Direct Treasury: Full access to fiscal resource quorums. According to the investor’s profile and investment plan, the Tesouro Direto has some types of securities. These types of bonds have something more to offer that is not seen when comparing descriptions and characteristics of bonds. Invest and know what to expect and when.
Treasury Fixed Rate
Features: The Fixed Rate Treasury provides a fixed interest rate at the time of purchase. You will receive something at maturity, regardless of what happens in the main market.
Pros and Cons
- Pros: Provides consistent returns and serves as protection against inflation. If you buy a generic bond without considering the prevailing interest rate, you may partially benefit from an early exit if rates fall in the market.
- Cons: In a rising rate environment, if sold before maturity, the investor will lose capital.
When to Invest: GNMA is for investors who want security and predictability, assuming that rates will not increase during the life of the bond.
Selic Treasury
Characteristics: Securities that are linked to the Selic rate, the benchmark rate of the Brazilian economy. It is a liquid option with lower risk.
Pros and Cons
- Pros: A safeguard for people who might need the money at any moment.
- Cons: Lower returns as rates decrease.
When to Invest: Useful during periods of recession and acts as a contingency fund.
Treasury IPCA+
Characteristics: More than 3.77% above a return indexed to inflation (IPCA).
Pros and Cons
- Pros: Protects against the erosion of purchasing power; can potentially generate returns superior to inflation in the long term.
- Reduced sensitivity to interest rate fluctuations compared to longer maturity bonds; sales by experienced dealers can occasionally add some value to the bond (depending).
- Cons: Loss of value if sold before maturity, especially at high rates.
When to Invest: It is excellent for protecting your capital against inflation and for saving for early retirement or postgraduate studies.
How to Monitor an Account in the Treasury Direct
The process of Tesouro Direto has a few steps, but it is quick and easy. See how to get started:
10 Ways to Start Investing
Consider opening an account with a low-cost brokerage that has good customer service. Open an account and then deposit the desired amount.
If you already have an account, access the Tesouro Direto portal to acquire the available bonds, according to your financial condition and risk appetite.
Purchase: After deciding on the bond, follow your broker’s instructions to buy the bond. Monitor your investments on the broker’s portal.
Choosing a Broker Choosing a Broker
Step 2: Choose a broker — Compare the management fees and customer support.
Ease of use: Use a platform only if you decide that it is intuitive and easy to use.
Next Steps — Each One Needs to Be Worth It
Optimizing your strategies — after investing, monitor the life of your securities and revisit your plan periodically.
Conclusion
Tesouro Direto: It is one of the safest and most liquid fixed-income investments in Brazil. I explained its three types of bonds: Tesouro Prefixado, Tesouro Selic, and Tesouro IPCA+, and their characteristics, benefits, and disadvantages.
Treasury Direct: Ideal option to safely increase your savings. Investment decisions should be made based on this. GOOD answer, investing in Treasury Direct is a key investment for a financially independent lifestyle.