Luiz is surprised by the great volatility in the prices of assets traded on the market and wonders if there is any opportunity to buy or sell investment fund shares taking advantage of these fluctuations.
It asks if the quota value is calculated using the price at the time of the transaction, the average of the day or the closing value, both on investment and on redemption, in particular, in the case of equity and foreign exchange funds.
Each fund establishes the criteria according to which the invested capital will be converted into quotas in the investment; when shares will be converted into cash on redemption; and when will the ransom payment be made.
As determined by the CVM (Securities Commission), the fund has few options when investing, it must adopt the share of the same day of application (D0) or the share of the following day (D+1). Upon redemption, however, each fund may freely establish the deadline for converting the shares.
Fixed-income and retail-distributed funds normally use the share of the same day or the day after the redemption request to convert the shares into cash.
Others, such as multimarket funds, for example, may establish that the conversion will be made within 30 or 60 days after the redemption request, for example. The investor maintains the investment during this period and does not know the value at which he will sell his shares, which can be higher or lower than the value on the day of the order.
Two inconveniences: the investor does not know the sale price, keeping the capital at risk, exposed to price fluctuations; and will have to wait several days to receive the ransom payment, compromising its liquidity.
In relation to the payment of the redemption, CVM admits that the payment is processed within five business days, counting from the date of conversion of shares. Equity funds, for example, convert their share on T+1, and the redemption payment, on T+3, from the date of conversion.
It has already been understood that there is no opportunity to buy before the price rises or sell before the price falls, but the question regarding the quote calculation remains: value at the time of the transaction, average of the day or closing value?
Funds can adopt opening or closing quota. The closing quota is calculated at the end of the day and reflects the price fluctuations, positive or negative, of each asset that makes up the portfolio. Thus, it definitely closes the door to any opportunistic speculation.
As the disclosure is made on the following business day, the shareholder does not know the exact amount that will be used to convert his capital into shares (on investment) or to convert his shares into capital (on redemption).
The opening quota can only be used in low-risk funds whose market value is predictable, as in the case of Fixed Income DI funds.
Where can investors find this information? This and many other useful information, necessary and mandatory for choosing the appropriate fund, are contained in a document known as a sheet, or in the Essential Information Document (DIE) of the investment fund.
Indispensable reading before investing and during the period of investment in the fund to check whether expectations are being met and monitor the fund’s past profitability, observing how it behaves in periods of high volatility and analyzing the consistency of the fund’s performance in relation to the objective defined in its regulation.
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