FIDC shares can only be acquired by so called “qualified investors”, whom are investor that posses at least R$ 300.000 in financial market applications. The minimum investment in each FIDC is R$ 25.000.
The way in which investors close their position in the fund will depend on the type of fund. Open-end funds allow the investors to close their position at any time after a given grace period. However, it is important to note that the settlement will only occur upon cash availability and according to each fund’s regulation. Closed-end funds on the other hand, do not allow investors to close their positions, but offer a payment schedule and allow the sale of the shares to third parties in the secondary market.
FIDCs, in investors’ point of view, are considered fixed income investments. In most cases, they can be extremely attractive since they offer higher returns than other fixed income instruments such as: Certificate of Deposits, Government Bonds, Real Estate Credit Bonds and Agribusiness Credit Bonds. However, before investing in them it is necessary to conduct through analysis of the portfolio and the manager considering that as any fixed income investment, the risk could be high or low.
By the characteristics described above, it is possible to conclude that this type of investment is more appropriate to those investors who are not after liquidity but after distinguished returns in the middle and long run.
FIDCs are a competitive way for investors and fund managers to obtain exposure to Brazil´s securitization market
FIDCs are recommended to investors who are looking for distinguished returns in the middle and long run.