Fixed income funds return to registering contributions in January, after 4 months of redemptions

Fixed income funds returned to registering net contributions in January, after four consecutive months of net redemptions. Inflows discounting outflows in this category reached R$ 11.37 billion last month, according to data from the Brazilian Association of Financial and Capital Market Entities (Anbima).

Fixed income funds had net withdrawals of BRL 48.9 billion in 2022. The largest, of BRL 123.3 billion, took place in December. Brazilians were withdrawing the money to buy fixed-income securities exempt from Income Tax, maintain their standard of living with high inflation and pay off debts with high interest rates, according to the entity.

The increase in the stock of real estate credit notes and certificates (LCI and CRI) and agribusiness (LCA and CRA) by R$ 264.3 billion last year points to the predilection of investors for these securities, which draw attention in an environment high interest rate. They have a significant tax advantage, which fixed income funds do not.