B3 announced that it reached, in October, a record of 4 million accounts of individuals in variable income.
There are 1.1 million accounts for women and 2.9 million for men, which totals an amount in custody of an individual of R$490 billion.
It is noteworthy that the number represents the number of accounts opened in each Brazilian brokerage. The number of CPFs is lower, 3.4 million, as the same person can have an account opened at more than one broker.
“With the growth of opening accounts in more than one intermediary, we also started to disclose, a few months ago, the number of CPFs. It is a more accurate thermometer to assess the real trend in Brazilian behavior in a scenario of high interest rates and high volatility”, explains Felipe Paiva, Director of Customer and Individual Relations at B3.
Investor characteristics
According to a statement from B3, most new investors (48%) enter the equities market between 25 and 39 years old. Then there is the range between 19 and 24 years, representing 24%. “This brings more colors to the generational change we’ve seen since 2019,” says Paiva.
The number of equity investors grew 26% when comparing September 2021 with the same period last year. The Real Estate Investment Funds (FIIs), Index funds (ETFs) e Brazilian Depositary Receipt (BDRs) rose 40%, 96% and 1,414%, respectively, in the same comparison.
Analysts at B3 assess that diversification is a feature that has become increasingly recurrent in investors’ portfolios. In 2016, 78% of individuals held only shares in their portfolios. By 2021, that number had dropped to 49%.
“What we are seeing is that, more and more, investors have a combination of shares with other stock exchange products, putting into practice the concept of portfolio diversification”, points out the director of the Brazilian stock exchange.
Since 2019, the average value of a person’s first investment in variable income is decreasing. The amount, which used to be around R$1,500 reais, is now around R$273.
“Doing an X-ray of the 86 thousand investors who entered in September, with a median of R$273, we observe that the majority entered with even smaller investments, in the range up to R$200”, says Paiva.
“We can infer that it is a portion of the investor’s equity, even more combined with the median portfolio number of BRL 8,000. In other words, individuals come in with low contributions, but keep them recurrently”, he adds.
Variety
The Brazilian stock exchange currently offers 715 share BDRs and 45 ETF BDRs released for retail. The investor also has 54 ETFs available for trading, including cryptocurrencies.
Also mentioned was the creation of an ETF-specific website to contribute to the education of the individual who is interested in the product and wants to compare the different features with the ETF BDRs.
Fixed Income
In addition to variable income, the study also points to growth in fixed income, which is still the Brazilian’s preferred investment. There are 9.6 million individuals in some type of product.
Compared to the end of 2020, there was an increase of 11% in the number of CPFs and 17% in the balance in custody.
The Bank Deposit Certificate (CDB) is the most requested product. There are 6.8 million individuals in CDBs and a balance of R$ 473 billion – growth of 11% in the product compared to 2020.
Bank Deposit Receipts (RDBs) are in second place, with 2.3 million CPFs. Following are products exempt from income tax and which usually offer higher returns than savings, such as Real Estate Credit Bills (LCIs), with 907 thousand individuals, and Agribusiness Letters of Credit (LCAs), with 593 thousand.
“From this publication, we will also start disclosing the number of investors in various fixed income products. This complete picture provides important information for our entire ecosystem and those responsible for this transformation: from brokers and banks to opinion makers and good influencers”, says Paiva.
The number of investors in Tesouro Direto also continues to grow. That’s 16% more in CPF numbers in 2021 compared to the previous year, reaching 1.7 million investors.
In addition, the profile of these investors has changed considerably over the years, with an increase of 16 percentage points in the participation of women when compared to 2013 – they represent, today, 41% of investors in the product.
Reference: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
