Introduction
In recent weeks, we have explored various investment options to preserve the value of money over time, outpace inflation, and potentially earn returns. Among the safest investments available are government debt bonds, issued by Mexico’s Banco de México (Banxico) and accessible through the Secretaría de Hacienda’s Cetesdirecto platform.
Types of Government Debt Bonds
Cetes (Certificados de la Tesorería de la Federación)
Cetes, introduced in 1978, are investment instruments designed to provide individuals with secure, low-risk investment opportunities. José Ballesteros, Cetesdirecto’s public sales director, explains that Cetes are ideal for beginners as they teach investors to monitor yields, interest rates, and understand the safest options in the market.
- Investment Minimum: You can start investing with as little as 100 pesos.
- Guaranteed Returns: Cetes offer fixed interest rates from the outset, backed by the Mexican government.
- Reliability: With a 47-year history, Cetes have never defaulted on payments.
- Investor Base: Cetes are popular among individual investors, brokerages, Afores, and foreign entities.
Cetes come in various terms: one month, three months, six months, one year, and two years. Their interest rates are directly tied to Banxico’s reference interest rate, currently ranging from 8.15% to 8.49% annually.
Bondes and Udibonos
Bondes are another type of government debt instrument, accessible to individuals starting from 100 pesos. These are fixed-income, adjustable-rate securities that update monthly based on market conditions.
- Bonddia: A daily-available bond with a current yield of 8.28%.
- Bondes (5-year term): With a yield of 8.74% annually, these are medium-term investments.
- Udibonos: Designed for long-term investments (3, 5, 10, or 30-year terms), these are inflation-indexed debt securities.
Udibonos’ key advantage is their complete protection against inflation. Investors receive their principal adjusted for inflation plus an additional return upon maturity.
Currently, Udibonos offer returns between 4.92% and 5.11%, plus the inflation-adjusted value of the money, making them suitable for those building college funds or planning retirement.
Maximizing Your Investments
Starting your investment journey with government debt bonds is straightforward. Cetesdirecto allows investments as low as 100 pesos, while some banks and brokerages also offer Cetes.
- Interest Compounded: Reinvesting your capital and earned returns at the end of the term can boost your overall returns.
- Recurring Savings Tools: Setting up automatic deposits can help you consistently build your investment.
Ballesteros emphasizes that government bonds serve as an entry point to the investment world. Once mastered, investors can explore higher-risk, potentially higher-reward instruments.
