Do you have savings and do not know what to do with them?
Usually, people have some money saved somewhere that does not generate returns. In Mexico there are low risk investment instruments, so they have a relatively low return. However, they are a good option to start investing and grow our money.
The issue of a security is carried out when it is registered as a debt security and generates an obligation when it is placed among the investing public. The titles of the Federal Government are issued through the Ministry of Finance and Public Credit, and are placed and protected by Banxico and are 4: Cetes, Bonds, Bonds and Udibonos.
These instruments are basically loans that the user makes to various instances, whether private or governmental. Said instances are committed to pay for the loan with interest in favor of the user. Each of these instruments has different characteristics, either in the time of payment of interest or in the adjustment of a variable rate.
Cetes
The Federal Treasury Certificates, also known as CETES, are the oldest debt instruments in Mexico. These securities are characterized by being zero coupon bonds, that is, they are traded below their nominal value of $ 10.00. At the end of the term you receive a return that is the difference between the price paid and the nominal value at maturity. The terms that the cetes have are 28, 91, 182 and 364 days.
Bonds
Government Development Bonds have a fixed interest rate throughout their life and they give you yields every 6 months. These government securities have terms of 3, 5, 10, 20 and up to 30 years. Normally, companies acquire these instruments, but individuals can acquire them through cetesdirecto.
Bondes
Federal Government Development Bonds are government securities that are issued in 5-year terms and pay variable interest every 28 days. The interest rate paid by these securities is determined by composing daily the rate at which credit institutions and brokerage houses carry out purchase and sale operations and report within one business day with bank securities, known in the market as the “weighted rate of bank funding ”. These instruments are ideal for those people who have capital from which monthly payments are made, such as rent, child or parent support, etc.
Udibonos
Udibonos are issued in Investment Units (UDI's) and pay interest every 6 months based on a fixed interest rate, plus a profit or loss that is indexed to the behavior of the UDI's, the UDI's in turn, are adjusted to inflation, this prevents capital from losing its purchasing value over time. Udibonos are issued for terms of 3, 10 and 30 years. This instrument is ideal for future plans such as an alternative retirement plan or for the children's university, to name a few.
Federal Government debt is part of reference indices, which explain the evolution and performance of a set of global representative baskets or of different groups of countries according to grouping criteria (level of industrialization, geographic area, level of performance, etc.).
Sadly, many people are unaware of the existence of these instruments. It is important to promote financial education in Mexico, and investments fall within this category. In this way, returns can be generated from savings, which will allow us to carry out a medium or long-term plan, or even get out of trouble.
Bibliography
- P. (2019). Do not know what to do with your SAVINGS ?. Retrieved from https://www.condusef.gob.mx/Revista/index.php/ahorro/ahorro/418-no-sabes-que-hacer-con-tus-ahorros(2019). Retrieved from https://www.cetesdirecto.com/sites/portal/productos.cetesdirectoPúblico, S. (2019). Government Securities in the Local Market. Retrieved from https://www.gob.mx/shcp/documentos/valores-gbiernomentales-en-el-mercado-localHernández, J. (2019). Time to invest ?. Retrieved from
