With the savings account embittering near zero income, and the impending pension reform (which puts millions of insured people in check), many Brazilians are awakening to the need to study more about financial education and thus the decisive factor in the construction of its own heritage . Evidence of this trend is the current amount of online finance courses and their demand for enrollment. If you also have these concerns, the first question you need to answer is “What is a financial asset?”
Financial assets are all that can be purchased to subsequently generate investor value. Each of the options on the market can be classified according to several specifications: term (short, medium and long), type of profitability (fixed and variable income), volatility, liquidity and degree of risk (low, moderate and high).
We are talking about: real estate, commodities, currencies, gold, jewelry, stocks, futures contracts, public and private securities, among other investments. But beyond knowing what a financial asset is, what are its types? How to deal with them in forming an investment portfolio? These are the answers you will have now!
What are the types of financial assets?
It is not enough to know what a financial asset is, it is necessary to understand what its classifications are and what each group’s options have in common with each other. With this, the investor becomes autonomous to set up a truly diversified investment portfolio, which has positive effects on its financial growth.
Remember that diversification is not the random agglomeration of numerous assets, but the combination of applications of different effects. They must be carefully linked to mitigate any individual negative results, reduce the average portfolio risk and, at the same time, increase its overall profitability. This is the importance of knowing what types of financial assets are. Are we going to them?
Income Generating Assets
Technically, any asset is for income generation purposes. The point is that there are some who can earn interest more often, becoming an extra source of income for the investor.
Income-generating assets are therefore investments that guarantee periodic returns to the investor, such as rental properties, semi-annual interest-bearing Treasury bonds (IPCA NTN-B Treasury) or dividend-paying shares.
Ideally, much of your investment portfolio should be long-term oriented. Speculation may be interesting, but the excessive use of this strategy unnecessarily exposes the investor to higher risks, which can result in losses and – worse than that – his definitive removal from the market.
Considering that many people entering the financial market want to get rich (and not just getting change for the month), the ultimate goal of every successful investor should be the future, even though the short term seems turbulent. And this is where growth assets come in.
Growth assets are investments that may experience greater volatility in the short term, but undergoing corrections over time that, from a broad look, indicate continued (albeit slower) income growth.
They are ideal for investors who have a little more time to build their assets, who invest to secure a peaceful retirement or to secure a secure future for their children.
This classification includes the IPCA Treasury with interest at maturity and private pension plans (the latter are fundamental assets when the focus is long-term financial stability).
Financial reserve assets
Usually associated with fixed income, these assets have in common liquidity. While the purpose is to increase investor capital like any other financial investment, this type needs to be easily redeemed as it can be used to secure cash in an emergency.
Financial reserve assets include daily liquidity CDBs, savings accounts, Selic Treasury (whose low average volatility facilitates pre-maturity sales without losses) and redeemable life insurance.
How to use a financial asset?
Now that you know what a financial asset is, its types and characteristics, you need to know how to use it. And the keyword, as you can imagine, is diversification. But how to diversify your portfolio?
Successful diversification is the product of three factors, properly aligned and respected: risk profile + market opportunities + macroeconomic context.
Although not a rule, you can generally find your risk profile based on the following set of characteristics:
- conservative: poor market knowledge, small capital, low risk tolerance, long-term goals, older age.
- Moderate: Some investment experience and knowledge, capital that allows for some diversification, medium risk tolerance, medium / long term objectives and age that allows certain risk to be taken with possible future corrections.
- bold: expertise in the financial market, experience in various types of investments, high equity, short / medium / long term goals and age that allows higher risks with adequate time for eventual course corrections.
As for market opportunities, by knowing well what is a financial asset, you will have at your disposal an immense menu of investments with different maturities and return triggers, which requires rationality when harmonizing them with your risk profile. .
You will not invest 70% of your equity in shares, having only $ 20,000 from unemployment insurance and FGTS. Similarly, it would be a waste of time to have experience and more than $ 500,000 to invest, applying everything in the savings account. You need to understand the measure of your financial maturity.
Analysis of these market opportunities will be confirmed
But also by identifying what the economy is asking for. If you are experiencing a Selic moment at 14% per year, why risk most of your equity in equity if any CDB, LCI or Treasury Direct (post-fixed) can yield above 1% per month?
A smart investment portfolio should use financial assets with different maturities, different payoff triggers (such as Selic Treasury, which varies with interest rate fluctuations and foreign exchange funds, which rise as foreign currencies fluctuate).
You must observe the correct proportionality (fixed or variable income) in relation to your risk tolerance. Finally, it should protect part of its capital from sound, long-term, expertly managed assets – such as a conservative / moderate private pension fund.