International investment funds: how to invest with diversification
Investing abroad with diversification is a way of taking advantage of the strength of other currencies, such as the dollar and the euro, in combining them in different geographies and asset classes.
For this to be done efficiently, it is essential to evaluate where to allocate money to mitigate risks and increase income potential.
In addition, this type of investment can be made through global ETFs - certificates that represent shares traded outside Brazil -, international investment funds or international accounts.
There are several ways to diversify investments internationally
To start investing abroad, it is important to research the different modalities, fees involved and secure digital platforms to make investments efficiently.
Among the main forms of international investment are:
- BDRs (Brazilian Depositary Receipts): are certificates traded on the Brazilian Stock Exchange (B3) that represent shares of foreign companies. In other words, they function as "receipts" to invest without having to open an account or send money abroad
- ETFs (Exchange Traded Funds): are funds traded on the exchange that aim to replicate the performance of foreign market indices. They allow you to invest in hundreds of global companies with just one purchase
- International brokers: there are financial institutions that offer investment options abroad, including through specialized platforms, such as Inter's Home Broker
Opening an account abroad can bring other financial benefits
In addition to international investment as financial diversification, international accounts can offer special conditions, including the reduction or cancellation of fees.
Other advantages include:
- faster currency conversion
- more security when traveling internationally, without needing to withdraw cash
- international debit card without charging taxes, such as IOF
- ease of international purchases via e-commerce
- maintaining a balance in foreign currency in the account, which tends to be cheaper than constant conversions
Inter is one of the financial institutions that offers these conditions, with a diverse investment portfolio, including cryptocurrencies.
IR investment declaration and payment of fees must be made
To keep investments and income regularized, it is necessary to be aware of the financial requirements for this type of application.
In the case of direct investment through international accounts, remittances must be made via applications enabled for exchange operations, in addition to global digital bank accounts.
In addition, spread rate (exchange rate) and IOF (Financial Operations Tax) apply to transfers. Income, such as dividends and interest, still needs to be declared to the IRS.
Protecting your money from fluctuations in the real is the main advantage
Diversifying your investment portfolio through international funds, accounts and shares is a way of protecting your assets from devaluations of the real, the local Brazilian currency.
Experts often recommend this type of investment to dilute risks and guarantee access to the largest economies and global markets.
However, even if this is done with stronger currencies, such as the dollar and euro, exchange rate fluctuations can affect the value converted into reais.
Source: CNN