LCA / See How to Invest and Get Results

The LCA is an investment free of fees and taxes, which is why it is very desired by thousands of investors and in recent years, investing in LCA has become something very accessible and easy to do.

In addition to being an investment free of fees and taxes, the LCA can still be very advantageous, especially in our current moment, where market interest rates are low.

If you are part of the large group of people who are interested in better understanding how the LCA works and a lot of other information, know that this is the right place for you and for your questions.

What is the LCA and how does it work?

If you are not aware, the LCA is the Agribusiness Letter of Credit and is also a fixed income security issued by thousands of Brazilian banking institutions.

In which, the process consists of a kind of "loan" that is made from the investor to a banking company, and in exchange for the service in question, the investor receives a return.

The main factor that differentiates LCA from LCI is the investment focus. In the case of the LCA, each and every resource that is obtained is directed to finance the activities of the agribusiness sector.

In this way, just as with LCI, the rate of return and the maturity date of the investment are factors defined at the time of purchase.

Types of ACL available

There are some types of LCA that are available for investment in the market and these are: prefixed, post-fixed and hybrid.

Do you want to meet each one of them? Then continue reading below:

— prefixed LCA:

Once an investor invests in prefixed LCA, he can know in advance what the gain on the investment will be and this happens because the rate is disclosed at the time of purchase of the security.

For reasons like this, this option is considered the safest among all the others, since the customer does not need to worry about possible fluctuations that occur in the market, since this presents advance knowledge about how much his income will be.

- Post-fixed ACL:

As already stated in their name, post-fixed LCAs have a fixed return after their purchase (to be more exact, at the time of redemption of the amount).

In these cases, the rate in question may be practiced by Interbank Deposit Certificates (CDI), which consist of short-term loans issued by banks.

Another interesting option is the LCA corrected by the IPCA (which is the official inflation indicator in the country).

In both cases that were presented, the value can vary and this ends up making post-fixed LCAs subject to some market fluctuations.

- Hybrid LCA:

The hybrid ACL works and consists of combining the characteristics of the two types mentioned above (post-fixed and prefixed).

That is, this means that it is necessary to pay a fixed percentage and another linked to an indicator.

While the pre-fixed rate has the objective of guaranteeing and replacing the inflationary losses of the period, the variable rate offers its investors a real gain for their investment.

Advantages of investing in LCA

As has been said, investing in LCA can be very advantageous for thousands of investors, but after all, what are the advantages of making this investment? See these below:

Profitability: it usually presents higher rates of return than the CDI;

Diversification: highly recommended for all those investors who are interested in diversifying their portfolio;

Income Tax Exemption;

Security: LCAs are classified as low-risk investments;