Investment Funds

Investment funds are an excellent diversification option for any investment portfolio. An investment fund is made by uniting various investors and adding up their investment resources so they can be used in a combined investment effort – essentially making up an investment association. An investment fund is run by professionals, such as managers and administrators. Managers are responsible for the investment strategy, and administrators for the legal aspects concerning the fund.

The great advantage of investing in an investment fund is diversity. Many times the common investor, for lack of time or money, will not be able to buy certain assets, like a expensive stock or a asset with a high value. In an investment fund that becomes possible, for the cohort aspect will account for larger resources available.

There are numerous fund classifications. Fixed income funds with daily liquidity, short term funds, equity funds, multimarket or multi-asset funds, among others. Here are some of the main investment funds currently in existence in the Brazilian market:


Investment funds – Basic Concept

1. What is it? The main idea behind an investment fund is the same that can be found in an association. In an investment fund a group of people comes together to jointly invest...


Off-Shore Funds

1. What is it? Off-shore funds basically invest resources in foreign assets, and they are even based outside the country, even though its manager is Brazilian-based. Thus, those funds are useful for investors who...


Investment Funds in Investment Funds

Investment Funds in Investment Funds 1. What is it? Funds for investment in investment funds (or simply quota funds) focus, as the name suggests, in choosing a variety of investment funds in which to...


Sovereign Debt Fund

Sovereign Debt Fund 1. What is it? Sovereign debt funds aim to invest in Brazilian bonds traded in the international market. This type of fund represents the easiest, fastest and most practical way for...


Forex Funds

1. What is it? Forex funds invest in bonds relating to the price variation of a specific foreign currency or on currency spread contracts (currency spread contracts are bonds that pay a compensation if...


Index Fund

1. What is it? Index funds, or Exchange Traded Funds – ETFs, aim to invest their resources in a way that will follow the performance of a specific market index. Their quotas as usually...


Receivable Note funds

1. What is it? Receivable note funds – or FDICs, in the Portuguese abbreviation – invest their resources in receivable notes issued by financial institutions, industry, real estate lending companies and other such issuers...


Real Estate Funds

1. What is it? Real estate funds, also formed as a condominium, invest their resources in housing and constructions projects and real estate assets of any kind (commercial, residential, etc). These funds acquire realty...


Multimarket Funds

1. What is it? Multimarket funds, as the name suggests, are funds that can diversify their portfolios, providing more alternatives to investors. Such funds may be investing in DI rates, Selic rates, interest rates,...


Variable income fund

1. What is it? Variable income funds, stock funds or equity funds (as they’re usually called) must invest a minimum of 67% of their portfolio in stock, DRs, subscription bonuses or receipts, stock certificates,...