If you got to this post, you must already have money saved and researched what to do with it. Probably the same recommendation appeared in all your searches: becoming a beginner investor. While the theory seems very easy, the practice appears to be more complex, right?
In fact, getting your hands dirty, as the saying goes, is simpler than it sounds. Starting to invest requires a little knowledge and a reliable financial institution. However, what do you need to know? How to choose the right bank? How to define the best financial application ?
That’s what we’re going to answer in this article from a step by step. So how about knowing each step?
Understand the financial market
Is your goal to succeed in the investment world? Do you want to invest in variable income and also in fixed income? Do you want money to work for you? If you answered “yes” to all these questions, you first need to understand the financial market and how it works.
Basically, this is the trading environment for financial products and assets. Those who offer the money (investor) and those who borrow (borrower) participate in this agreement. The first transfers the amount he has saved and, in exchange, receives the same amount plus interest. The second, in turn, pays the extra fees.
This relationship does not always happen directly. In the case of a bank loan, there is no intermediary. On the other hand, the purchase of government securities and shares requires the intercession of a stockbroker. In some cases, from B3, the São Paulo stock, commodities and futures exchange, the only one operating in Brazil.
You may already understand this practice. What you may not know is that the money apparently stopped in your checking account can be used as a resource for the loan. As the consultation is virtual, the financial institution only ensures that the necessary amount will be available to pay a bill, transfer or withdraw some amount.
So even if you don’t want to, it’s part of the financial market. This explanation makes it clear that it is worth investing. After all, banks receive interest on the money in your account for using it for various operations – and you should also earn this benefit.
What do you need to know about the financial market?
The previous explanation shows that anyone can apply their capital. However, to become a beginner investor it is essential to save. This measure needs to be adopted for several reasons, such as going on a trip, buying a house or a car, ensuring a comfortable retirement, having an income, etc.
In either case, the goal is to have a stable and peaceful financial life, while building a solid wealth. This is how the future is secured. However, to choose the best possibilities, it is essential to understand what the different options mean.
Search constantly and contact the bank to clear up any doubts. Deepen your knowledge to the maximum and master the main terms of the financial market, which are listed below.
This term characterizes the increase in market prices. To be clear, just imagine what you did with R$100.00 in the year 2000 and what you do today with the same amount. You’re likely to find that your purchasing power is significantly lower today—and that’s what inflation does: It erodes your income.
With regard to financial investments, the ideal is to calculate the real profitability, that is, how much you will earn above inflation. This calculation is made by the remuneration offered by the investment divided by the current inflation. For example: if the annual yield is 8% and inflation is 4%, the result would be 3.84%, because: (1 + 0.08) / (1 + 0.04) – 1 = 3.84 %.
In this case, the real gain would be 3.84%. If it were negative, it would indicate a loss of that percentage, that is, you would earn more than the initial investment, but it would not cover inflation.
The Extended Consumer Price Index is the indicator that governs the country’s official inflation. It is measured by the IBGE and indicates this price increase process that we present above.
The basic interest rate of the economy is the reference for most of the negotiations that take place in the financial market, because it serves as a “floor” (ie, minimum value) for Brazil. Its definition is made by the Monetary Policy Committee (Copom) . Therefore, it is the basis for remuneration and references for loan and financing collections.
Interbank Deposit Certificate (CDI)
The CDI is an acronym known only to those who invest, but it is very important for the economy. Simply put, banks issue bonds to fund their own operations. The reference for these transactions is this certificate.
Since it is an exclusive role for banks, it is not accessible to individual investors. At this moment, you must be thinking: “so, why should I meet him?”. Because the CDI is the index for many financial investments, which pay a percentage of the CDI.
Normally, the CDI accompanies the Selic and is very close to it. Therefore, if the basic interest rate is falling, so is the bank balance indicator. Investments can pay less or more than 100% of this index.
In short: information about the financial market is varied and it is necessary to delve deeper to understand exactly how it works. So far, we have presented a simple and quick explanation. However, it is important to go further. Therefore, to finish this part of the article, we list some films that help to understand this context:
- Walt Antes do Mickey (2015): offers inspiration for those who want to undertake and make the right decisions;
- Too Big to Break (2011): shows questionable practices in the financial market, which involve risk and ethical issues;
- Wall Street: Power and Greed (1987): Goes backstage in the 1980s and how people do anything for money;
- Looking for Happiness (2007): brings a strong incentive to chase your dreams and never give up on being successful in the market;
- Fome de Poder (2017): presents the story of McDonald’s and Ray Kroc, the professional who made the brand what it is today by creating value for shareholders;
- The Wolf of Wall Street (2014): indicates how important it is to be careful and knowledgeable in order not to fall into scams that promise miraculous returns.
Choose the ideal bank for beginner investors
Being a novice investor requires you to choose a bank to invest through. The financial institution acts as an intermediary and, therefore, it is important to be extra careful when making your choice.
If you simply choose a bank or brokerage firm without thinking about the consequences, it is likely that you will pay higher fees than necessary, experience problems with service and support, experience unforeseen events and other negative situations.
To avoid facing these obstacles, we present some simple tips that help to identify the quality of the institution. Check out!
Making a financial application means paying some fees and charges. Some are subject to Income Tax, which follows the regressive table for all cases. However, financial institutions also charge significant amounts, which decrease your return.
In this context, it is necessary to pay attention to some aspects:
- brokerage fee: is charged by the institution and varies according to the market. The ideal, when possible, is to look for a bank without fees ;
- custody fee: levied only when the investor has a position in variable income assets. The amounts are quite divergent and can range from zero to R$30.00;
- Treasury Direct administration fee: it is valid only for government bonds, but it is a bank charge. Ideally, look for a free option;
- home broker or trading desk: evaluate the fees for online trading, which are usually cheaper than those carried out over the phone;
- Withdrawal fee: charged by some banks when the customer makes a withdrawal or transfers the amount by bank transfer.
In this regard, it is important to reinforce that the ideal is a bank with the lowest rates. Therefore, analyze the Total Effective Cost (CET) to see the percentage that will be charged. Still, look at the cost-effectiveness to ensure that the institution meets all your demands.
Check the bank’s credibility
It is essential to verify whether the financial institution is allowed to operate in the financial market and the feedback on its credibility. This aspect is directly related to transaction security. So it’s worth doing some in-depth research.
Ratings from international entities are good indicators that the institution is trustworthy. So check if there is any recommendation in this regard. For example, Paraná Banco’s rating at Standard & Poor’s went from brA+ to brAA+, which confirms its high credibility.
Analyze the strength of the institution
Having a large bank does not always indicate solidity. Many medium-sized institutions are more established and this is reflected in certifications and ratings. The ideal is always to research the company’s history to ensure that it is well established in the market.
If possible, check out B3’s quality seals. They ensure that the company complies with market standards and performs operations with safety and excellence.
Note the quality of service
Having a quality service is the first step to success. As a first-time investor, you need to make sure you have the support you need whenever you need it. Therefore, this is a criterion to be analyzed when choosing the bank.
Evaluate the available communication channels, as well as the training and availability of professionals. Before closing a deal, do a test. Send e-mail, test the online chat and search for information to see how the service is. After that, just make your account and start applying the money that is available.
How to choose the best options? This is what we will explain now.
Choose the first investments
It’s time to start investing and you’re in the middle of a bunch of acronyms and information. Choosing the best alternatives depends on a number of issues and your knowledge.
An important aspect is to analyze your investor profile. Generally speaking, there are three categories:
- conservative: prioritizes safety, even if this implies a lower remuneration;
- moderate: tries to reach the balance between risk and return, that is, to earn the maximum possible with the greatest security;
- bold: seeks a high return, even if this brings a high probability of losses.
At this point, you must have identified with one of these classifications, right? However, whatever the answer, it is best to opt for less complex investments right away, as you are still a novice investor.
The reason for this recommendation is simple: choosing long-term stocks , for example, or any other application of variable income requires greater knowledge of the market. Because he is still starting in this world, the chance of his attitudes resulting in loss is greater.
Due to all these reasons, the ideal is to choose fixed income, which is the safest alternative. Within this scope, there are several options, but one of the best for beginners is the Bank Deposit Certificate (CDB). Investing in CDB is synonymous with minimal risk with good returns.
Do you want to be sure? Just use an investment simulator . We made a comparison with the CDB, with an initial investment of R$10,000.00 for a period of 12 months. With a bond that pays 110% of the CDI, the amount reaches R$10,550.19. If the remuneration is 96% of the index, the final amount is R$10,478.13. Just for information, Savings would yield less and would result in R$10,453.15.
But what is CBD? These are private securities issued by financial institutions. It’s like lending money to the bank. Compensation can be:
- prefixed: protects against market fluctuations, because the percentage of return is defined in the contract;
- post-fixed: offers a variable yield, according to an index, which is usually the CDI;
- hybrid: it is the IPCA modality , which has a fixed percentage and a variable percentage depending on the inflation index.
The advantage of the CDB is to offer, in some cases, daily liquidity. This means that you can withdraw the amount at any time. However, you need to pay attention to the grace period, which is the minimum time you should wait to redeem.
In addition, it has minimal risk and is also protected by the Credit Guarantee Fund (FGC), which covers up to R$250,000.00 per bank per CPF, up to a limit of R$1,000,000.00. Thus, you are guaranteed a return, make an intelligent investment as a novice investor and avoid losing money.
What to do if I want to have a bigger return?
Do you know more about the financial market, are you already investing and ready to take a risk? The tip is to opt for variable income. In this modality, there are also several alternatives. However, it is worth thinking about the best mutual fund .
This modality works like a condominium. Several investors apply their capital and a manager is responsible for managing the values, charging a management fee in return. Because it has this characteristic, the fund can also be fixed income, but it is common for it to have at least part of its investments in variable income.
The choice of investment funds is interesting, because it offers a greater chance of return with less risk due to the management carried out by the manager. With this, you risk more without putting your entire capital at risk.
To better understand how investment funds work, learn about the main ones below.
Have a minimum of 67% of funds invested in the stock exchange. There is a lot of volatility — so the risk is higher. At the same time, the earning potential is too. Equity funds are categorized into:
- liabilities: the yield varies according to an index, for example, the Ibovespa ;
- assets: the portfolio is formed based on macroeconomic analyses.
They follow the oscillation of interest rates. The investment is made in Prefixed Direct Treasury securities or low risk securities . Yield varies with Selic or CDI.
fixed income funds
Focus on fixed income. Of the total applied, at least 80% is destined for this modality. The rest is usually allocated in derivatives to raise the remuneration.
These are investments made in foreign currency, mainly the dollar and the euro, like government bonds in other countries. It has high volatility.
External debt funds
Invest 80% or more of total capital in external debt securities. The return varies according to interest rates and the performance of the dollar exchange rate against the real and assets in the international market. It experiences a lot of oscillation.
They balance fixed and variable income. They are excellent alternatives for investors who want the maximum return with the lowest possible risk.
real estate funds
They only invest in this sector. The advantage is that he specializes in the real estate market and, therefore, allocates values based on their profitability.
They use a benchmark—that is, a benchmark—as a goal. Most assets (95%) need to be linked to the indicator. Therefore, the investments tend to be safe, because 80% of the equity or more is invested in low-risk public or private securities. The best-known referenced fund is the DI, which uses the CDI as an index.
As you can see, there are funds for all types of investors. The most volatile ones are recommended for those who are bold. In turn, low risk are indicated for the conservative. In general, the rule is:
- conservative profile: multimarket and fixed income funds;
- moderate profile: multimarket and real estate funds;
- bold profile: equity, real estate and capital funds.
From this explanation, it became easier to know which are the best applications for beginner investors and also for the next moment, when you already have greater knowledge about the financial market. However, there is still another step to ensure the best possible remuneration. Look!
Keep a close eye on trends
So far, you’ve seen what aspects you need to pay attention to in order to be a successful investor. The options are varied — so it is recommended to study the subject to understand how it works. However, you also need to keep up with market trends.
How to do this? The rule is to read news and rich materials (like this post!) referring to the subject. In addition, it is essential to have a reliable financial institution that allows you to invest your money in different channels, as in the Paraná Banco Investidor application .
By having a closer relationship with your bank, you are advised about the best opportunities and even have the chance to increase your remuneration. It’s all you want, right?
Get to know the financial market trends now and see how they help you become a successful beginner investor.
Undoubtedly, those who start investing first need to outline their profile, based on the three main classifications: conservative, moderate and bold. Cognitive computing helps in this process, because it processes information and learns the user’s choices without requiring specific programming.
In this way, the machine presents the most appropriate investment, including the percentage of success based on real predictions. It’s a simple way to contribute to decision making.
To make life easier for account holders and investors, Brazilian banks have been investing in apps for several years. This is nothing new, but the format for using these resources is.
The latest models use Big Data and other technologies to simplify your choices and point out which are the best options. You can also make your investment as per your needs.
With the purpose of improving the experience of beginner investors, financial institutions started to use this technology to collect and store data from users’ routine. From there, they offer personalized opportunities to increase the return potential.
These trends are just a part of what’s to come in the financial market. In this complete guide, you realized that several aspects are part of the routine of a beginner investor – and the more you know them, the greater the chance of success. Here, we offer a basic and broad overview that will help you in your first steps.
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