Conservative investment fund that yields 10% a year? Does it exist?

Do you want to invest in fixed income funds and have more than 10% annual income? In the Chat with Specialist, a weekly live program on UOL, economist César Esperandio explained whether it is possible to find this profitability in fixed income funds, and also said that, contrary to what many people think, it is not always possible to have predictability of the income of this type of fund.

Understand below why fixed income funds do not have “fixed” returns and watch the program excerpt. The Chat with Specialist is an exclusive investment queries for subscribers and is broadcast every Thursday at 3 pm.

Passive management funds replicate the CDI

Before deciding to invest in funds, it is necessary to understand their characteristics, explained Esperandio, who is also from the Econoweek channel.

There are short-term fixed income funds that typically invest in Selic Treasury bonds, and, therefore, the profitability is far from 10% per year. Selic Treasury bonds yield a bond plus the basic interest rate, the Selic, which today yields 5.25% per year.

According to him, if you invest in passive management funds, which seek to replicate the CDI, it is possible to have a certain predictability — which is based on Selic’s profitability in the coming months and years.

“Even so, we are not sure how much Selic will be,” he said.

It is difficult to predict the profitability of a fixed income fund

But are there fixed income funds that have this income above 10% per year? It is difficult to predict this profitability, said the economist.

According to him, the predictability of a fund’s income is not that clear. “The funds have a very large diversification of assets,” he stated.

Fixed-income securities with yields greater than 10%

“But there are fixed-income securities that yield more than 10% a year. They are less liquid assets. In other words, your money will have to be invested longer,” stated the economist. He indicated the Treasury Direct platform to consult these bonds.

According to him, Prefixed Treasury bonds are yielding close to or even above 10% a year. On the other hand, the IPCA Treasury bonds can exceed this yield. The IPCA Treasury pays inflation plus a bonus. “If inflation remains at around 8.5%, these bonds may yield more than 12% a year,” he said.

“The most sensible thing is, after having your emergency reserve set up, you diversify between fixed and post-fixed bonds,” he declared.

Specialist Chat is every Thursday

The program Chat with Specialist is broadcast on Thursdays, from 3:00 pm to 4:00 pm, on the home page of UOL and UOL and is exclusive to subscribers. Review past programs here.

You can send questions to Papo by e-mail [email protected] —they can be answered in the program.

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