In this sense, it is not enough to analyze the gross profitability obtained. In fact, there are investments that, even if they increase in value, make the investor lose money. Therefore, it is worth knowing the alternatives that yield above inflation .
Want to know more about it? In this content you will find 4 investments that score a goal against inflation. Read on!
What is inflation and how is it calculated?
Inflation refers to the gradual increase in prices of goods and services traded in a country. It is a normal and expected situation. Over time, prices rise due to changes in supply and demand from consumers, internal and external supply situations, among other scenarios.
The idea is that inflation remains under control, so that the population and the economy in general have more stability and predictability in relation to price movements.
When it is too high, wages paid may not keep pace with rising prices. In this way, either wage readjustments are carried out with high frequency, bringing a series of problems to the economy, or the population loses purchasing power and consumes less.
However, deflation — which would be a drop in the price of goods and services — also brings problems. After all, companies are programmed to sell their goods at a certain price, which influences production costs and hiring employees, for example.
If prices fall, producers usually suffer losses or have their accounts unbalanced due to this reduction in value. For this reason, the Government uses various techniques to control inflation and prevent it from getting too high or too low.
How does inflation impact investments?
You've already seen that considering inflation in investments is essential to put together a good strategy and protect yourself from price increases.
To understand this question, you must understand the difference between nominal profitability and actual profitability. Nominal return deals with the gross income of the investor. Imagine that you invested BRL 1,000 in a security whose fixed return was 12% per year.
If you redeem after one year, you will receive R$1,120, correct? This is the nominal return. However, imagine that inflation during this period was 10%. This means that the real profitability would be close to 2%, as it considers the investor's earnings discounted for inflation at that time.
This calculation helps you assess how much your purchasing power has increased with the money invested. In this case, your money had a lower appreciation than nominal income, considering the increase in prices of goods and services in the economy.
What are 4 of the investments that can yield above inflation?
As you have seen, taking inflation into account when investing is essential to make more informed choices.
Check out the following 4 investments that may make sense to beat inflation:
1. Treasury IPCA+
Treasury Direct securities are fixed income investments issued by the Federal Government and guaranteed to be paid by the National Treasury. Therefore, they are very low risk.
Among the alternatives of the Direct Treasury is the IPCA+ Treasury. It is a security whose profitability is linked to the IPCA — which, as you have seen, is the official inflation in the country — added to a fixed rate. Therefore, the bond will yield above inflation.
You can find an IPCA Treasury + 5% per annum, for example. This guarantees a real profitability close to 5%, bearing in mind that it is necessary to consider the Income Tax (IR) paid.
But one must be careful: the IPCA+ Treasury only guarantees its profitability if it is carried until the maturity date. Before this period, the security may suffer devaluation or not guarantee the promised earnings, considering the mark-to-market.
2. Inflation funds
Investment funds are financial vehicles in which a professional manager assembles a portfolio with investor resources. To participate in the results obtained by the fund, those interested buy shares — they represent a fraction of the vehicle's equity.
Each fund has its own rules, investment strategies and financial objectives. In this sense, there are inflation funds. In them, managers build a portfolio with fixed income securities that follow indicators such as the IPCA.
The manager's responsibility is to bring profitability close to inflation or to exceed it. Thus, investors interested in earnings linked to this index buy shares and expose themselves to the fund's portfolio.
3. Hybrid Debentures
Debentures are fixed income securities issued by publicly traded or privately held companies. They work like a loan for the company: companies issue bonds and investors buy these certificates — raising funds for the business.
Then, on the redemption date, the company must return the invested amounts added to the combined profitability. In this context, there are hybrid debentures, which work like the Treasury Direct IPCA+.
Therefore, the investor guarantees a real return above inflation. But it is necessary to consider that the credit risk here is greater. This happens because the payment guarantee comes from the company, which may be unable to repay investors financially.
4. LCI and LCA
LCIs and LCAs are real estate and agribusiness letters of credit. These fixed income securities are issued by banking institutions to raise funds for the respective areas of activity within the bank.
Letters of credit can also offer returns above inflation, using the hybrid model. The main advantage here is the exemption from IR. As these markets are relevant for national development, the Government offers the exemption as a stimulus to investment.
Another advantage is that they are protected by the Credit Guarantee Fund (FGC). So, in case of non-payment by the bank, there is coverage of 250,000 per CPF or CNPJ and institution. There is also a global limit of 1 million that is renewed every 4 years.
Did you manage to understand which investments are used to protect yourself from inflation? It must be remembered that the financial market has numerous alternatives, so this is not a closed list and you can find other investments that make sense for your strategy!
