Treasury Direct: Investing Directly in Public Debt Safely

Introduction

Tesouro Direto is a Brazilian government program that allows investors to buy public bonds directly from the National Treasury. This type of investment is considered one of the safest on the market, as the bonds are guaranteed by the federal government. In this glossary, we'll explore the different types of securities available through Tesouro Direto, the costs involved, the redemption periods and the most common investment strategies.

What is Tesouro Direto?

Tesouro Direto is a Brazilian government investment program that allows individuals to buy public bonds directly from the National Treasury. These bonds are issued by the government to finance its activities and are considered one of the safest forms of investment available on the financial market.

Types of Securities

There are different types of securities available on Treasury Direct, each with specific characteristics and redemption periods. The main types of securities are: Selic Treasury, IPCA Treasury, Fixed-rate Treasury and Fixed-rate Treasury with Half-Yearly Interest. Each of these securities has a different yield and maturity, which allows investors to diversify their investment portfolio.

Costs and Fees

When investing in Tesouro Direto, investors should be aware of the costs and fees involved. In addition to the value of the security, the investor must also consider the custody fee, which is charged by B3, and the brokerage fee, which is charged by the broker responsible for the operation. It is important to calculate these costs before investing to ensure that the investment is profitable.

Redemption deadlines

Each type of Treasury bond has a specific redemption period, which can vary from a few days to several years. It is important for investors to be aware of the bond's maturity date before investing, as redeeming the bond early can result in financial losses. It is important to plan your investments according to your financial objectives and desired redemption periods.

Investment Strategies

There are various investment strategies that can be adopted in Treasury Direct, depending on the investor's profile and financial objectives. Some of the most common strategies include buying securities with different maturities, diversifying the investment portfolio and reinvesting the income earned. It is important to consult an investment specialist to help define the best strategy for your profile.

Advantages of Treasury Direct

Tesouro Direto offers a number of advantages for investors, such as the security of government bonds guaranteed by the federal government, the ease of investing online, the diversification of the investment portfolio and the possibility of redeeming the investment at any time. In addition, Treasury Direct securities offer an attractive return compared to other forms of fixed-income investment.

Risks of Treasury Direct

Despite being considered a safe investment, Treasury Direct is not without its risks. Some of the main risks involved include the possibility of interest rate fluctuations, government credit risk and the possibility of losing purchasing power due to inflation. It is important that investors are aware of these risks and know how to manage them in order to protect their assets.

How to Invest in Treasury Direct

To invest in Tesouro Direto, investors need to open an account with an authorized brokerage firm and buy the securities they want through the online platform. It is important to choose a reliable broker that offers good support to the investor to ensure a safe and smooth experience. Once the securities have been purchased, the investor can monitor their profitability and redeem the investment whenever they wish.

Conclusion

Treasury Direct is an excellent investment option for those looking for security and profitability in the financial market. With different types of securities, affordable costs and the ease of investing online, Treasury Direct is an attractive alternative for diversifying your investment portfolio and achieving your financial goals. It is important to study and understand how the program works before investing, to ensure that the investment is made in a conscious and planned manner. Consult an investment specialist to help define the best investment strategy for your profile and financial goals.