The Brazilian Retail Investment Landscape

Transforming savers into investors, 2013.

For years, Brazilians have invested conservatively in basic savings accounts and fixedincome products, but that could change as Brazil undergoes a series of demographic, macroeconomic, and household wealth changes that encourage diversification.

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.

The Brazilian Retail Investment Landscape