Market fluctuation makes investors think about the viability of fixed income funds

If there was a direct and objective answer to the following question: is it good business to stay or invest in fixed income funds? Certainly, there would be no consensus or certainty regarding this.

Perhaps the best answer is: it depends. There are many factors to consider, ranging from the inclination to take risks when investing money to those that are beyond the control of those looking for a good investment.

In this last item, it is explained that the Covid-19 he became one of the main responsible for the abysmal falls in the Stock Exchanges worldwide.

Equity investments or equities have been having terrible successive results. As an example, Bovespa recorded a negative rate of 35.3% within one month. Only in the last two weeks, the São Paulo Stock Exchange has triggered the circuit breaker mechanism, which is necessary at times when the trading session registers a strong fall in shares and forces the interruption of transactions. That hadn’t happened in years.

It is clear to those who have shares traded the poor performance of variable income in terms of income.

This attractiveness for investing in companies has been motivated in recent times by the consecutive cuts made by the Copom (Monetary Policy Committee) in the Selic Rate. With this decision, fixed income funds were gradually losing interest from customers and many migrated to the stock market. Now, as mentioned before, the scenario has changed again.

Various opinions

When consulted, investment experts offer more than one answer to the question that remains silent within each client: where is it best to invest?

Is it advisable to keep capital in fixed income?

For people who do not like or are averse to taking risks, the most advantageous option is to leave in fixed income. Do not mess with it, as these funds do not undergo a sudden change in the stock market. Another positive point is to be free of worries and nervousness due to the unpredictable behavior of the actions. Products such as CDB,…

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