See how to use FGTS to buy Eletrobras shares

As of this Friday (3), workers with a balance in the FGTS (Fundo de Garantia do Tempo de Serviço) will be able to invest in Eletrobras shares, as part of the privatization process of the largest electric company in Latin America. Shares can be reserved between June 3rd and 8th, and you will need to choose a bank or a brokerage firm.

The worker can invest the minimum amount of R$ 200, being possible to use up to 50% of his balance in the FGTS, according to Caixa. If you choose to buy shares, you will need to wait a year to be able to sell them and the money will return to your fund account, that is, it can only be withdrawn in situations provided for by law, such as dismissal and retirement.

The reservation period is valid for all investors who have an interest in the shares and the value of each share will only be known on June 9, in the interest of investors.

The Eletrobras share offering was launched by the company on Friday (27) and should move a volume of up to BRL 35 billion, according to a preliminary prospectus delivered to the CVM (Securities Commission), with a primary offering of 627.6 million shares. and an additional lot of 104.6 million shares. About R$6 billion will be reserved for retail investors who want to allocate part of the funds held in the FGTS.

Can the worker who invests the FGTS in Eletrobras sell the shares whenever they want?

The investor will have to hold the shares for a period of at least 12 months. After this period, he will be able to sell them, but the money will return to the Guarantee Fund account and can only be withdrawn according to the rules provided for by law (such as unfair dismissal, purchase of a home and retirement, for example). See here the 16 situations that allow the withdrawal of the FGTS.

What is the minimum and maximum amount that I can invest from the FGTS?

The minimum amount for the application is R$ 200 per worker and it will be allowed to use up to 50% of the balance in the fund, informed the Caixa.

Where can I check the amount I can invest in Eletrobras?

The balance inquiry and investment simulation are done in the FGTS application. It will also be possible, at Caixa branches, to consult the balance available for investment in FMP (Mutual Privatization Fund), to simulate the application and to authorize a brokerage firm to carry out and reserve the amounts that will be invested.

Step-by-step query:

• Access or download the FGTS app on your cell phone (for those who have already downloaded it, it is necessary to update)
• Click on “Sign in to the app”
• Enter your CPF and go to “Continue”; if necessary, click on the requested images and then on “Verify”
• Enter the password and click “Login”
• On the home screen, below, on the right, there are four squares that read “More”; click on them
• On the next screen, choose “Application Simulator in FMP – FGTS”
• The next page will provide guidance on the simulation; scroll down and click “Go to simulator”
• Select “FMP Eletrobras” and then go to “Continue”
• The amount that can be invested will then appear.

Do I need to hire a broker to invest my FGTS?

Yes, and the worker will also need to access the FGTS app and authorize the institution to consult the balance of their linked account of the Fund and to reserve the amounts.

How to choose the broker to invest my FGTS?

You need to compare the administration fees charged. Competition in the market has caused many homes to lower management fees in recent days. Check below the list of funds structured to receive contributions from workers with FGTS resources and administration fees, with data updated until June 1st.

Is it worth investing my FGTS in Eletrobras shares?

Analysts are divided: on the one hand, investing in Eletrobras shares can provide the shareholder with returns well above those provided by the FGTS, on the other hand, it is necessary to consider the significantly greater risk of investing in variable income, compared to the modest but guaranteed return , from the FGTS. It is necessary to consider the risk profile of the investor and assess whether this money would be essential if fired. This is the case of the worker who does not have a fixed income reserve for emergencies and would need this resource from the fund to pay basic bills.

I have FGTS money invested in shares of Vale and Petrobras. Is it worth withdrawing to invest in Eletrobras?

The worker who invested FGTS resources in Petrobras and Vale shares, in the early 2000s, obtained results well above those of the Fund, according to an analysis by Genial Investimentos. Investment in Petrobras shares from August 18, 2000 to May 24, 2022 yielded approximately 1,153% (considering the appreciation of the stock on the stock exchange and the distribution of dividends in the period), against 185% of FGTS, and 289% of inflation measured by the IPCA (Extended National Consumer Price Index). In the case of Vale, from March 28, 2002 to May 24, 2022, the shares appreciated by around 3,900%. The FGTS yielded 156% in the period, and inflation was 247%. Founding partner of investment analysis house Nord Research Bruce Barbosa says that he has been recommending clients not to withdraw money from the FGTS invested in Vale and Petrobras shares to invest in Eletrobras.

What is the difference between the two funds offered?

There are two different models of products offered to investors: the FMPs (Mutual Privatization Funds) FGTS Eletrobras, for those who want to join the process, and the FMP FGTS Migração, intended for those who want to migrate the resources allocated in the funds created at the beginning of the 2000 with shares from Petrobras and Vale.

I will invest at Eletrobras, but I don’t have money in the FGTS. What is the requirement?

For the retail investor who is not going to use the FGTS, it is necessary to have a bank or brokerage account to make the reservation request and give the order to purchase the shares. The minimum amount in these cases is BRL 1,000 and the maximum is BRL 1 million.