What is Liquidity?

What is Liquidez?

Liquidez is the ability to quickly convert an investment into cash. The more liquid it is, the faster you can access the money.

Types of liquidez

• Liquidez diária (D+0): Money available on the same day. Ex: Tesouro Selic, CDB with daily liquidity.
• Liquidez D+1: Available the next day. Ex: Some investment funds.
• Liquidez no vencimento: Can only be redeemed on the agreed-upon date. Ex: CDB with a term, LCI/LCA.

Escala de liquidez

From most liquid to least liquid:

1. Money in a checking account
2. Tesouro Selic / CDB with daily liquidity
3. Fundos DI
4. CDB with a term
5. Real estate funds
6. Stocks
7. Real estate

Quando a liquidez importa?

• Reserva de emergência: needs daily liquidity
• Objetivos de curto prazo (< 1 ano): high liquidity
• Objetivos de longo prazo (> 5 anos): can give up liquidity for higher returns