Invest in Cetes, or Treasury Certificatescan represent an option for people who are used to leaving their money in a savings account at the bank, or who keep it under the mattress.
The Cetes are short-term Mexican government debt, which currently pay a interest rate higher than inflation and similar to the yield of long-term debt instruments, such as the 10-year bond.
These instruments are federal government debt and are issued by Banco de México, which is the government issuer. Every week the central bank holds an auction, called the primary auction, in which it offers government debt.
Learn to invest in Cetes without complications: Practical tips to invest your money
Fintual assures that the Cetes are yielding good yields and that interest and inflation rates are high. And although there are more profitable alternatives for horizons longer than one year, we show you four strategies to maximize your profits.
index investment
This is investing in a fund that tracks a specific income index, such as the government bond index. In this case, the indexed investment is made from your brokerage house by acquiring ETFs (traded funds) that contain government bonds.
What good is index investing? It allows you to diversify and invest in bonds from other countries with less complicated processes.
passive investing
This strategy is ideal for ‘patient’ investors, that is, those who seek low-maintenance management and long-term returns. You must invest in a fund whose function is to buy and hold Cetes until they mature.
active investment
Do you want to get the best possible returns? Then you need to go for active investing. However, as its name suggests, it requires a lot of attention and maintenance at all times.
You must “try to anticipate” the purchases to the interest rate increases, hunt the best times and valuations for probable scenarios. It is a ‘manual’ investment mode and it is easier when you are aware of the markets.
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