Deadline to invest FGTS in Eletrobras shares ends at 12:00 this Wednesday (8); see if it’s worth it

The deadline for the worker to invest part of his FGTS (Fundo de Garantia do Tempo de Serviço) in Eletrobras shares ends at 12:00 this Wednesday (8). The investor may use the minimum amount of R$ 200 to reserve securities through a bank or brokerage FMP (Mutual Privatization Fund) up to the limit of 50% of the balance in the fund.

The amount actually invested, however, will depend on the demand for the shares. If the amount exceeds R$ 6 billion, there will be apportionment. The value will be known this Thursday (9). This Tuesday (7), Eletrobras shares closed down 0.24%, trading at R$ 41.80.

The investment in Eletrobras shares is made online, through the FGTS application, and it is necessary to have a bank or brokerage account authorized to manage the FMP-FGTS Eletrobras. The account must be active by 12 pm this Wednesday (see deadlines and how to open the account). Caixa Econômica Federal, the fund manager, estimates that around 40 million workers will be able to make this application.

In the FGTS application, the worker must also authorize banks and financial institutions to move the money, in addition to choosing the FMP for and determining the amount he wants to invest in the shares.

The money can only be moved after 12 months, with the exception of situations provided for by law for withdrawal of the Guarantee Fund, which involve buying a home, dismissal without just cause or retirement, among others. In this case, it will be possible to sell the shares earlier.

Upon dismissal, those who opted for withdrawal-termination will also have a fine of 40% calculated on the entire balance of the company’s account in the fund, also adding up what they invested in FGTS.

With the reserve of shares, the government begins the privatization process of Eletrobras, the largest electric company in Latin America. The offer, launched on Friday (27), is expected to move R$ 35 billion, according to a preliminary prospectus delivered to the CVM (Securities Commission). Initially, there will be 627.6 million shares. The total considers an initial lot of BRL 30.69 billion, plus a supplementary lot of 104.6 million shares.

See management fees calculated until June 3

Is it worth investing in Eletrobras shares?

Investors are divided on whether or not it is worth investing the FGTS in Eletrobras shares. For Richard Domingos, from Confirp Consultoria Contábil, the investment is valid, as the Guarantee Fund has a low profitability of 3% per year, in addition to the payment of the profit obtained with the fund. In 2019 and 2020, the fund’s nominal investment stood at 4.9%.

“I think it’s really worth it, because the Guarantee Fund doesn’t yield almost anything. With high inflation, the worker loses a lot of money. whoever invested the FGTS in the shares of Vale and Petrobras in the 2000s had a profit.

The investment in Petrobras shares, from August 18, 2000, until May 24, 2022, yielded about 1,153% against 185% of the FGTS, and 289% of inflation, according to Genial Investimentos. In the case of Vale, the appreciation was 3,900% from March 28, 2002 to May 24, 2022, compared to 156% for the FGTS and 247% for inflation.

Educator Cíntia Senna, from Dsop, says that care must be taken when evaluating whether to use the FGTS in the purchase of Eletrobras shares. According to her, the fund may have losses, as it is a variable income. In addition, if the fund fails, the worker will be at a loss, as these amounts are not guaranteed by the FGC (Credit Guarantee Fund), which currently covers up to R$250,000.

FGTS at Eletrobras | What to do

• The deadline for investing the FGTS in Eletrobras shares is until 12:00 this Wednesday (8)
• The minimum investment amount is R$200 and the maximum, 50% of the balance in the Guarantee Fund, adding active and inactive accounts
• It is necessary to download the FGTS application and authorize the access of banks and brokers to your Guarantee Fund
• In the app, the investor chooses the financial institution that will move the values, in addition to how much he wants to invest
• You must have a current account or investment account at the chosen bank or brokerage firm
• This account must be open and active by 12pm this Wednesday (8)
• If you do not make the investment using the FGTS, it is still possible to be a retail investor in Eletrobras shares, but only through brokerage firms; In this case, look for your

See the step-by-step guide to investing:

1. Open the FGTS application; if you don’t already have it, download it to your phone
2. Enter your CPF and password to enter
3. On the home page, click on the option “Authorize banks to consult your FGTS”; the procedure is necessary so that the chosen bank or brokerage company can move the values ​​​​and reserve their shares
4. Then, on the authorization screen for consulting FGTS information, click on the option “Application in FGTS Privatization Mutual Funds”
5. Select the Privatization Fund for authorization; go to “FMP Eletrobras” and then to “Continue”
6. Click on “View term” and read the information carefully; check “I have read and accept the terms and conditions” and then click “Continue”
7. Enter the name of the chosen FMP-FGTS administrator —the options presented are Banco do Brasil, Banco do Nordeste, Bradesco, BTG Pactual, Caixa, Daycoval, Genial Investimento, Itaú, Safra, Santander and XP Investimentos— and then go to ” Yea”
8. The process will complete; if you wish, you can change or cancel the authorization, at any time, until the reservation of values ​​is effective.

CAN WORKERS WHO INVEST THE FGTS IN ELETROBRAS BE ABLE TO SELL THE SHARES WHEN THEY WANT?

The amounts invested in FMP-FGTS Eletrobras have a grace period of 12 months for redemption, but can be withdrawn by workers upon dismissal, retirement, death, use for housing, three years out of the FGTS, serious illnesses and other situations (see here the 16 situations ). If the worker does not fall into a withdrawal situation, he can sell the shares after the grace period, but the money will return to the Guarantee Fund account and can only be withdrawn according to the rules provided for by law.

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. The amount actually invested, however, will depend on the demand for the shares and may not reach the total reserved by the interested party.

IS THERE A POSSIBILITY OF HAVING A RIGHT TO A VALUE IN ELETROBRAS SHARES LOWER THAN REQUESTED?

If the demand exceeds the limit of R$ 6 billion established by Eletrobras to receive FGTS funds from investors, an apportionment will be made to define the amount that each person will be entitled to.

WHERE CAN I CONSULT THE VALUE 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.

DO I NEED TO HIRE A BROKER TO INVEST MY FGTS?

Yes, the deadline to have a brokerage or bank account ends at 12 pm on Wednesday (8). The worker will also need to access the FGTS app and authorize the institution to consult the balance of their linked account with the Fund and to reserve the amounts.

HOW DO I CHOOSE A BROKER TO INVEST MY FGTS?

You need to compare the administration fees charged. Competition has brought down administration fees in recent days.

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 greater risk of investing in variable income, compared to the modest but guaranteed return, of the FGTS.

ARE THERE FGTS VALUES THAT CANNOT BE APPLIED?

According to Caixa, the amounts that are blocked in the FGTS account will not be available for investment, as a guarantee of credit operations with anticipation of the birthday withdrawal.

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 transfer the resources allocated in the funds created at the beginning of the 2000 with shares from Petrobras and Vale.

I WILL INVEST IN ELETROBRAS, BUT I DON’T HAVE MONEY IN THE FGTS. WHAT ARE THE REQUIREMENTS?

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 for the purchase of shares. The minimum amount in these cases is BRL 1,000 and the maximum is BRL 1 million.

DO INVESTORS WHO WILL NOT APPLY THE FGTS IN THE SHARES ALSO HAVE A MINIMUM PERMANENCE TIME?

In this case, there is no minimum period of permanence, and the investor can sell the shares at any time.