Investing is a challenging endeavor. One needs to do his or her research before making any investment. People can invest in different securities. These stocks have their own unique risks and returns. According to a Flavio Maluf article in Exame.Abril, investing in government bonds is one of the best ways to make returns at minimal risk. This is because these products have attractive and fixed interest rates. He points out that over the past few years, Brazilian government bonds have enjoyed an interest rate of 14.25%.
Certificates of Deposits, popularly called CBD in Brazil, form a good investment portfolio. This investment opportunity does not attract management fee because it is a form of loan, which an investor gives to a bank. However, income tax is charged on the investment’s returns. The good thing about this type of investment is that it comes with the Credit Guarantee Fund’s protection. However, it is important to limit the amount that one invests per bank to 250 000 Brazilian real since that is the maximum amount that the Fund covers per investor.
Fixed income funds are also ideal investment opportunities. These funds come with fixed interest rate that is unique to its provider. However, management fees are usually charged on these investments. The fee charged is a percentage of the total amount invested per annum. Before investing, it is advisable to analyze the potential effects of the management fees on the possible returns of a given security. One should invest in fixed income funds where the fee is below 1%.
People can also invest in a private pension. This form of investment involves contributing to a retirement fund. When making the decision on where to invest, it is prudent to pay more attention to both the fees and taxes charged. This is all a part of Flavio’s financial advice, including his opinions on taxes, and how best to manage them.
About Flavio Maluf
Flavio Maluf is a Brazilian executive. He was born on December 2, 1961. Flavio is the current CEO of Eucatex Group. Over the years, he has made bold opinions on Brazil’s economy. As per LinkedIn, Maluf graduated from Fundação Armando Alvares Penteado (FAAP) with a mechanical engineering degree before joining New York University to study Business Administration. He worked in the U.S. for a couple of years before returning to Brazil in 1987. Following his return, he joined Eucatex and worked his way up the company’s senior leadership positions. Maluf is married to Jacqueline de Lourdes Torres Coutinho. Make sure to check out Flavio on his Facebook, to get a better portrait of the man.