Brazil Stock Fund aims to invest in publicly traded companies headquartered in Brazil. The Brazil Stock Exchange is the largest in Latin America and the fourth largest stock exchange in all of the Americas judging by current market capitalization. American investors who are looking for investment opportunities beyond the boundaries of the United States of America do not need to look further beyond the oceans. All they need to do is go beyond Mexico to South America’s largest country, Brazil. With an economy that ranks as the 10th biggest in the whole world and one of the most modern stock exchanges ever, investing on stocks of local companies in Brazil have never been more sound than ever. Here are several pointers on how to invest in Brazil stock funds and what funds to invest into.
Brazil Stocks
A More Direct Approach
Brazil is open for foreign investors. Its government has imposed the necessary laws to make this possible. However, it is not as easy as local investors. Since you will be a foreign investor there are certain prerequisites that you need to have to be able to directly invest in any Brazilian stocks. First is that you need to employ a local individual or entity to be your representative for the regulations and taxation rules imposed by the government. Next prerequisite is that you have to register yourself as a foreign investor in the Federal Revenue Service, the Brazilian Central Bank and the stock market regulator CVM. Once you have all of the prerequisites done you can now start choosing what stock funds to invest your money into.
Brazil Mutual Funds
iShares Inc MSCI Brazil Free Index Fund (EWZ) Brazil Fund Inc. (XBZFX)
Brazilian Equity Fund Inc . XBZLX) Brazil Fund Inc. (BZF)
Brazilian Equity Fund Inc. (BZL)
Top Brazil Stocks
Brasil Telecom Stock Symbol : BTM Fibria Stock Symbol: FBR
Gafisa Stock Symbol: GFA TAM Stock Symbol: TAM
Vale Stock Symbol : VAL
Brazil mutual funds, like any mutual funds. There is a safe one for those who want the smallest risk involve,there is a long-term fund for those who want big returns in the long run but with manageable risks and there is the aggressive type fund where you can get very big returns or very big investment loses. Remember the basics of each type of stock funds. For safe and long-term stock funds start researching Brazil’s largest and most stable local companies as well as companies that have a steady growth trend. A good Brazil Fund that invests in these types of businesses is iShares MSCI Brazil Index ETF. For investing in aggressive funds look for the best small businesses in Brazil and see which stock funds invests in them primarily. The Brazil stock fund that does this is and has produced good results is Dreyfus Brazil Equity Fund.
A Different Route
If the direct approach is too much for you then you can always opt to invest in any available offshore investments in the U.S. These investments are listed in the New York Stock Exchange such as the Fidelity Latin American Fund. This investment fund invests about 60 percent in the stocks of local Brazilian businesses. This is also a safer approach than going for single country investment funds since this type of funds are very volatile than funds that invest in several countries. Well, we all know the risks involve and if you are willing to take your chances than any aggressive Brasil fund will do.
Just remember that even among the riskiest types of stock funds there are several or few that is quite the safer option than the rest.
