Fulfilling the dream of owning their own home is the main reason for the Brazilian from the D/E class to invest, according to a Datafolha survey commissioned by Anbima (Brazilian Association of Financial and Capital Market Entities).
For the first time, the entity included this income range in its X-Ray of the Brazilian Investor, to understand what happens in this universe of people with an average per capita income of R$ 862.41 and discuss with the market ways to simplify financial products for future investors.
The survey was carried out between November 9 and 30, 2021, with 5,878 people aged 16 and over in all regions of the country. The margin of error is plus or minus 1 percentage point within the 95% confidence level.
“It is a little predictable to see that the vast majority do not invest. But what surprised us is that there are people from the D/E class who are able to invest. The difference to those from the A/B and C classes is that few access financial products “, says Marcelo Billi, Anbima’s superintendent of Communication, Certification and Investor Education.
The survey shows that 34% of class D/E investors in 2021 focused on buying a property. While in classes A/B and C, the percentage was 28%.
“Makes sense [o número] given the vulnerability and volatile situations they face. It’s the idea of solidity and stability that home ownership gives to everyone, but it’s already a reality for the other classes”, says Billi.
According to Anbima, 31% of Brazilians (approximately 52 million people) invested in financial products last year. Of these, 52% are from class A/B, 29% from class C and 16% from class D/E.
According to Daniela Ferrari, vice president of Secovi-SP, the real estate market is attentive to this demand, with a significant offer of properties for this income bracket. “It went from 46 thousand units launched in 2021”, she says.
“In addition to demand, there are benefits. For families with an income of up to R$ 2,000, there is a subsidy of R$ 47,500 for the purchase of their first home. And the rest can be paid with financing, with an interest rate of up to 5 %”, says Ferrari.
The apartments offered for the D/E class, according to the specialist, have between 32 and 40 square meters, with two bedrooms, high towers and small leisure areas with a ballroom, without a parking space.
“Most of the construction companies have been looking for large forms of transport, because, in general, these families make collective trips”, says Ferrari.
Own business
Investing to have your own business was cited more than using the income for retirement or the purchase of a vehicle by people in the D/E class. A/B and C companies prefer to use the feature when they retire.
Another behavior variation between classes is in the use for leisure, such as travel or outing. Of the total number of respondents, 10% between the A/B and 7% C class mentioned this purpose for the saved resources, while in the D/E class this percentage was only 2%.
According to the Anbima survey, the savings account was the most spontaneously cited application (23%) and the most present among people in class A/B (34%), followed by C (23%) and D/ E (14%).
The other products, such as investment funds, private bonds, shares and digital assets, have a low share in the investment portfolio of those surveyed, with average indexes equal to or below 3%. In the D/E class group, the percentages were 1% for digital assets and the other products were not even mentioned.
“What we have to advance to the D/E class is to bring products that, in some way, can be explained. Compare the type of risks with the real life they face, to help these people better understand these products. There are more attractive options than trying to undertake something very risky or leaving the money at home,” says Billi.
“These people are socially vulnerable and, as they have a much higher income volatility, being able to manage financially a little better helps to maintain their quality of life. We need to think about how to reduce this distance and find out how they can save to invest” , says.
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