Certificate of Deposit
The investment serves as a loan made by the investor to a bank that is obligated to issue the paper. The good thing about this investment is that it does not require any management fee even if you have an obligation to pay some income tax. Flavio Maluf says that the paper is protected by a credit guarantee fund (CGF), and in case the bank goes bankrupt this amount should cover the investment. It is advisable therefore not to invest beyond the limit of FGC.
Fixed income funds
What any investor should consider when it comes to investing in fixed income funds is the management fee, and then make a decision whether to invest or not. It is important because some costs involved in the investments might be too high and end up compromising the returns. To invest in such funds, one should ensure that the management fee is not more than 1%.
These are amounts allocated to retirement with a possibility of postponing the payment for more returns to build. For such kind of investment, one needs to consider the management fee and taxes involved. There are two alternatives in this investment namely free benefit life and plan free benefit. The latter is more recommended for investors because it enables reduction of contributions made in the declaration, and taxation is made on the entire value of investment during redemption.
This is an application made in public government bonds by investors through a bank or a broker. The application can be linked to inflation, but the interest rate is set in advance. Flavio Maluf says that investors should concentrate on securities that are equivalent to the period in which the application will be withdrawn to avoid losing money.
About Flavio Maluf
Flavio Maluf is a Brazilian entrepreneur, born in 1961. He graduated from FAAP with a Bachelor’s degree in Mechanical Engineering before joining New York University to further studies and work as well. Mr. Maluf joined Eucatex group in 1987, where he started working in the trade line of the business before working in other areas. In 1997 Flavio Maluf became the president of the Eucatex group, and he serves as the CEO to date. He is also the Vice Chairman of the Board of Directors of the company.