As interest rates and inflation drop to unprecedented levels and the number of middle classhouseholds surges, “mass” retail investors are likely to start searching for higher yields andmake more medium-term investment plans. This will likely impact the investment market in Brazil in two ways:
- What investors buy: In search for yields, investors are likely to diversify into a broader set of asset management products, shifting away from such risk-averse short-term savings products into more attractive investment vehicles
- How investors buy: As product choice and diversity multiplies, investors are likely to seek tools and advice in navigating a more complex financial planning landscape
This will have potential implications for the Brazilian retail investor and financial institutions alike.