The number of investors in variable income at B3 has grown significantly in the North and Northeast regions of Brazil in the last three years, with increases of 150% and 112%, respectively, between 2020 and 2023.
Highlights
- 150% growth in the number of equity investors in the North.
- Increase of 112% in the Northeast.
- The majority of investors are between the ages of 25 and 39.
- Women invest larger initial amounts than men.
- A mediana do primeiro investimento é de R$128.
Regional Growth
According to a study released by B3, the northern region of Brazil saw a 150% increase in the number of equity investors between 2020 and 2023. In absolute terms, the number of investors rose from 77,000 to 192,000. In the Northeast, growth was 112%, with the number of investors rising from 310,000 to 658,000 over the same period.
Other regions of Brazil also showed significant growth. In the South, the increase was 87%, from 451,000 to 843,000 investors. In the Midwest, growth was 92%, with the number of investors rising from 208,000 to 399,000. The Southeast, which has the largest absolute number of investors, saw an increase of 75%, from 2 million to 2.861 million investors.
Investor Profile
The group of equity investors is mostly made up of people aged between 25 and 39, accounting for 421,000,000 of the total. In terms of gender, 751,000,000 investors are men and 251,000,000 are women. However, women are responsible for the largest initial amounts invested, with an average of R$199, compared to R$118 for men.
Democratization of the Market
The average value of entry into the variable income market is lower, which proves the democratization of the capital market in recent years. In December 2023, the median first investment of the 83,000 people who entered the market was R$128, with 57% of them investing up to R$200. This range includes 27% who entered with up to R$40.
Impact on the Financial Market
B3 currently has 5 million individuals who have some kind of investment in variable income. This group is responsible for a total of R$551 billion in stock in the Brazilian financial market, an increase of 20% compared to 2022.
Specialists' comments
Felipe Paiva, Director of Client Relations, Individuals and Education at B3, commented on the impact of digital banking on the growth of variable annuity investors. “The digital banking agenda of Brazilians in recent years has also opened the door to offering investment products in variable income. This flow of new digital bank accounts has been flowing into the investment world, and it is our task, as part of the capital market ecosystem, to continue eliminating the friction in the entry process and creating motivators and security for the long-term journey of this new generation of investors, which is growing in all regions of Brazil,” said Paiva.
For those interested in learning more about stock market in Brazil, B3 offers a free online course through Hub Educação.
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