Currently, in the investment market, there are several options to diversify investments in fixed income. Among them are the LCI (Mortgage Letter of Credit) and LCA (Agribusiness Letter of Credit) funds, which are securities issued by a financial institution used to finance real estate or agribusiness activities.
One of the most relevant points is undoubtedly that these investment options have no income tax discount. So, to find out more, check it out below!
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Those who invest in LCI and LCA are basically “borrowing” that money to the financial institution. This is what allows it to offer credit that encourages the development of these two great sectors. And as with any investment, it is in exchange for this loan that the investor receives interest payments on the amount invested.
Therefore, the main difference between LCI and LCA is the sector that each finances. As for the profitability, the application term and the initial contribution, they are also different between the two letters of credit. Another relevant aspect is that both bonds have low liquidity, that is, it may take longer for you to redeem the money.
Finally, we emphasize that LCI and LCA are exempt from Income Tax. This means that your application income is not taxed. Fees applied by brokers and financial institutions are also not charged in this type of investment.
How much does LCI and LCA earn?
LCI yield varies by type. Fixed-rate bonds are those in which it is already known, as soon as you invest in the bond, how much you will receive in income until its maturity. On the other hand, floating-rate securities have part of their yield linked to an index that varies according to some economic indicator, such as the IPCA.
The LCA yield will be based on a fixed rate (you know the yield at the moment of application) or a floating rate (linked to a market indicator, such as CDI and IPCA).
For optimal throughput, you need to analyze the possibilities of LCIs and LCAs. Therefore, check the minimum investment and maturity of each security. Also be aware of the liquidity of each one.
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