The ETF is becoming popular in Brazil as an investment product aimed at those who want to start their life as an investor in shares but do not have the time or desire to delve deeper into the study of these assets. And the tokenization of assets is present in this innovation.
It is true that index funds are not something new in Brazil, they have been operating for around 20 years, but it is natural that their rise was slow while qualified and safe information about investments – such as that generated by BLOCKBR – was little and /or inaccessible.
Currently, ETFs arouse the curiosity of those who want to invest in shares in the fastest way and without the obligation to manage shares individually.
But are index funds more advantageous than stock funds and securities that you can buy individually?
And where does the cryptomarket for tokens and digital currencies appear in this story?
BLOCKBR, a company that develops tokenization infrastructure, will show you the differences between these assets to help you make good investment choices!
CORPORATE ACTION: WHAT IS IT AND WHAT TYPES OF ACTIONS EXIST
Shares are the smallest possible part of a company’s purchase that can be traded on the market and are issued with the purpose of raising funds for the company’s projects.
The investor studies the options, purchases shares – stock picking – and becomes a shareholder of the company with rights and duties according to the type of share. Management is carried out by the investor himself, which requires in-depth knowledge of the market.
WHAT TYPES OF CORPORATE SHARES?
- Ordinary share: gives the right to vote at meetings and share in profits and distribution of assets distribution of assets in the event of liquidation or bankruptcy of the company;
- Preferred share: does not have voting rights, but has priority over common shares in receiving dividends and distributing assets.
INDEX FUND: WHAT IS IT AND WHAT TYPES OF ETF EXIST
The ETF or exchange-traded fund is a fund that represents performance indices of several financial assets combined, obtaining diversified exposure to a set of financial assets with just one transaction.
However, it should be noted that ETF is a basket of performances and not products; the investor does not have the right to own the assets reflected in the fund, only to earn profits (or absorb losses) based on the results of their performance.
WHAT ARE THE TYPES OF ETF?
- Variable income ETFs: they are known as stock ETFs, but they also include cryptocurrency ETFs, fiat currencies, commodities and other variable income products;
- Fixed income ETF: index funds based on the profitability of public or private fixed income securities.
STOCK FUNDS: WHAT THEY ARE AND HOW THEY WORK
As the name suggests, the stock investment fund is a consortium of investors who invest in Bovespa based on management that monitors the stock market and makes the best investment choices.
Before investing in equity funds, it is important that investors know the fund’s strategy and the risks involved to understand whether this type of investment aligns with their investor profile.
ETF, SHARES OR FUNDS: WHEN EACH OPTION IS WORTH
The three types of investment on the Stock Exchange have common characteristics.
- They are a variable income and high risk asset;
- Recommended for bold investors (who tolerate losses);
- Good options to diversify a moderate investment portfolio.
On the other hand, some aspects must be considered to define which (or which) of them are the most suitable for each investor.
INDEPENDENCE TO INVEST
If you want to manage investments in shares, stock picking is the only option, as it allows you to research and make choices. However, it is important to highlight that each share has a performance directly linked to the company’s market situation.
Therefore, extra care must be taken both in studies and at the right time to buy or sell shares.
SAFETY FOR BEGINNERS
The composition of equity funds is defined by professional and experienced managers. The ETF fund is created and distributed by financial institutions. Therefore, they are the ideal alternatives for those who want to invest in shares without worrying about managing choices.
The point of attention, in both cases, is to research the reputation of the companies offering the funds.
PRODUCT DIVERSITY
When purchasing shares directly, it is possible to diversify according to different criteria, however this is a complex and time-consuming job, the market is dynamic in nature and good opportunities are missed.
In funds (stocks and ETFs), diversity is an important objective to offer products with characteristics for all audiences – cryptocurrency ETF, sector of activity or commodity, for example.
TOKENIZATION AND EQUITY FUNDS MARKET
The tokenization of everything is also on the Stock Exchange!
Investing in crypto funds is already a reality; The BlackRock ETF is an index fund based on the price performance of bitcoin. In Brazil there are crypto index funds on the stock exchange, such as:
- BITH11 and QBTC11, backed by bitcoin;
- ETHE11 and QETH11, backed by ether;
- HASH11, backed by a basket of digital currencies.
DISCOVER TOKENIZED VARIABLE INCOME!
The tokenization market already offers excellent variable income options that combine the security and transparency of blockchain with a platform that operates 24 hours a day and can be accessed anywhere in the world.
BLOCKBR works with projects to tokenize assets, rights and projects from all sectors of activity, resulting in more agile and more profitable offers for those who offer and more profitable for those who invest.
Discover fixed income tokens that deliver profitability and low risk. You don’t leave your capital sitting in savings and make it yield more!
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to guide you on how to apply business tokens safely and with great results.
Open an account on our token marketplace and in minutes you will have access to a diverse universe of offers for all investor and budget profiles. Additionally, you can start investing in tokens from 50 reais!
Come to BLOCKBR, boost your results and get closer to your dreams!
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.
For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks
