'off the radar' fixed income security can pay up to 10% above inflation with income tax exemption – Money Times

A fixed income moved the market again with the increase in the Selic rate and changes in interest and inflation expectations.

Before the Copom decision, for example, Tesouro Direto bonds “surfed” the increased appetite for real gains and broke a record number of operations.

The National Treasury released a report on the performance of government bonds in July. The assets reached more than 869 thousand operations and moved a total value of R$6.43 billion.

One of the reasons that led to record operations was the significant number of issues of inflation-linked bonds, such as Tesouro IPCA+, Tesouro Renda+ and Tesouro Educa+.

The collection of these assets reached R$2.32 billion in the month and the bonds were responsible for almost half of the investments in Tesouro Direto in July, with 47% of operations.

The market's favoritism for inflation-linked bonds is strengthened in a context of high real rates offered in the market. Assets indexed to the IPCA have even offered remuneration that reaches up to 6.36% above inflationas is the case with Tesouro Educa+ 2026:

However, although government bond rates are quite attractive and the market has plunged into Tesouro Direto, it is possible to capture even higher returns by accepting an additional pinch of risk.

There are lesser-known fixed income securities on the market that are capable of generating “fat” profits above inflation.

To give you an idea, the remuneration of these “off the radar” assets can reach up to IPCA +10% – well above what is being offered by Tesouro Direto –, as is the case of a title that was “mined” by EQI Research.

In addition to the above-average return, another highlight of these assets outside the spotlight is the Income Tax exemption.

Not a single cent of the profits need to be allocated to the Federal Revenue Service and, therefore, the return in practice ends up being boosted.

Fixed income 'off the radar' still only has 13% of Treasury Direct investors

Although these fixed income securities stand out in terms of attractiveness, they are still little known in the market.

For comparison purposes, Tesouro Direto has around 2.6 million active investorswhile this other type of fixed income that can pay up to IPCA +10% only has 365 mil – equivalent to just 13% of the number of people who invest in government bonds.

Even though they are assets that are “off the radar” for a large part of the market, the attractiveness of these securities is undeniable. After all, they function as a strategy to:

• Protecting assets from inflation in a country that historically has high inflation levels;
• Seek a “fat” return above the IPCA that outperforms many other assets on the marketincluding the Direct Treasury; and
• Look for capture profits without worrying about Income Taxwhich has become a rarity in fixed income after changes in the regulation of CRAs, CRIs, LCAs and LCIs by the National Monetary Council.

Another highlight of this investment is that it has a very affordable minimum investment amount. With just over R$ 1 milit is now possible to position yourself in the title with a target return of IPCA +10%.

There are few opportunities in the market that offer double-digit returns above inflation. Therefore, it may only be a matter of time before more investors embrace this type of fixed income.

Of course, although this asset outperforms the return of Tesouro Direto, the The objective is not to eliminate investments in government bonds and not even use it for emergency funds. The composition of the portfolio must be thought out according to the profile of each investor.

However, the idea is to show that, by assuming a little more risk and with the availability to leave the invested amount “locked in” in the medium term, it is possible to seek very attractive returns without giving up fixed income.

This title is being released by the EQI team – see how to get it for free

If fixed income opportunities with above-average returns, income tax exemption and low minimum investment are of interest to you, here is a good news.

It is possible to learn about this title with potential returns of up to IPCA +10% completely free of charge.

Just click this link or any other subject to find out what this asset is, understand what is at “stake” and decide whether it is worth including it in your portfolio of investments.

The asset was selected by the team at EQI Research due to its expressive attractiveness and risk-return ratio that may be favorable for the investor. Not a single cent will be charged to find out what this fixed income security is. See the button below: