Which investment pays 1% per month? Short-term fixed income leads returns in March

Investments in fixed income securities with a shorter term, both public and corporate, had the best returns in the class for the third month in a row, among the assets monitored by the indices of the Brazilian Association of Financial and Capital Market Entities (Anbima).

The assets with the best performance were debentures indexed to the very short-term daily DI rate, which guide loans made between financial institutions. In March, the IDA-DI index delivered a return of 1.15%.

Next appear debentures linked to inflation accompanied by the IDA IPCA ex-infrastructure index, with a return of 0.74%. The IDA IPCA infrastructure, of incentivized securities, that is, which are exempt from Income Tax for the investor, increased 0.53% in the last month.

Debentures in general, including whether incentivized or not, yielded 0.90% in March, according to the IDA index. In the quarter, growth was 3.70%.

“The result is a reflection of the market’s doubts regarding the beginning of the cycle of falling American interest rates and Brazil’s inflation target for next year, which continues to maintain inflation projections above the center of 3%”, explains the Anbima economist, Marcelo Cidade. “These uncertain scenarios favor more conservative investments, especially those indexed to the daily interest rate.”

Among public bonds, short-term securities are also worth highlighting. The best results came from Financial Treasury Bills (LFTs) lasting one day, with a profitability of 0.86%, according to the IMA-S index.

Among fixed-rate securities, the portfolio of securities maturing in up to one year (IRF-M 1) yielded 0.84% ​​in the month. Meanwhile, the long-term portfolio (IRF-M 1+) grew 0.43%.

Inflation-indexed bonds increased by 0.77% in five-year bonds, but fell by 0.55% in longer-term bonds. Overall, public bonds yielded 0.52% in March and 1.64% in the quarter, according to the performance of the IMA index.