💵 Cash / CDI
The portfolio's "dry powder": money held in safe, daily-liquidity investments that earn close to Brazil's Selic rate, compound every day, and can be withdrawn at any time.
With the Selic (and CDI) near 14.65% per year, cash has never earned so well. Keeping a reserve today costs very little — it works almost like an investment, with total liquidity.
📘 What it really is
"Cash" is money you keep parked but earning, in daily-liquidity investments — meaning you can redeem today and the money hits your account the same day (or the next).
The CDI (Certificado de Depósito Interbancário) is the benchmark rate for these investments; it tracks almost exactly alongside the Selic, Brazil's base interest rate. When someone says "this investment earns 100% of CDI," it means it closely follows the Selic.
It's the stored ammunition. When the stock market drops, a real estate fund gets cheap, or an opportunity arises, this is the cash you use to buy — without needing to sell something else at the worst moment.
⚙️ What it's for
- Emergency fund: 6 to 12 months of living expenses, untouchable, for unexpected events.
- Ammunition for opportunities: money ready to buy discounted assets during downturns.
- Stability: the part of your portfolio that doesn't fluctuate, giving you peace of mind to hold the rest.
In the short term it keeps pace with inflation and earns the Selic; it's where every investor starts before moving on to other assets.
🛡️ The risk
This is the lowest-risk asset available in Brazil. Tesouro Selic (government overnight bond) is backed by the government; daily-liquidity CDBs (bank deposit notes) are covered by the FGC (Brazilian deposit guarantee fund) up to BRL 250k per institution. The chance of losing is minimal.
The only "risk" is opportunity cost: too much cash for too long loses out to real assets (stocks, real estate) over the long term. It's a foundation, not a destination — it provides security and ammunition, not wealth.
✓ Where it makes sense
Always. Every portfolio needs a reserve. Weigh it higher when there's no clear market outlook and you want liquidity to take advantage of dips — or simply to sleep well at night.
✗ Where to avoid
Keeping everything in cash for years. Over the long term, inflation and real assets pull ahead. It's the starting point, not the finish line.
🛒 How to invest in practice
Tesouro Selic (government overnight bond — the safest), daily-liquidity CDB (bank deposit note) from a solid bank, or DI funds with a low (preferably zero) management fee. Avoid the poupança (savings account) — it earns less than CDI.