Performance and Characteristics. Is it worth investing?

The arrival of BTP Value June 2023 it is imminent. The new instrument, designed by the Treasury for small savers, will be available for purchase at the beginning of June.

But is it really an attractive option for Italian investors? To better understand, we will delve into its main ones characteristicsi advantagesThe disadvantages eh risks related.

Finally, we will evaluate whether it is convenient invest in this tool or not.

Let’s start!

When does the placement start?

Il debut is scheduled for Monday 5 June and will continue until Friday 9 June (until 13:00), unless it closes early.

The procedure of subscription it’s very simple: retail savers can buy the security with a minimum investment of 1,000 euros, without commissions. It is possible to subscribe to the BTP through your own referentat the bank or at the post office, or even through home banking, if enabled for online trading operations.

The taxation on this tool will be del 12,50%i.e. the same preferential taxation applied to government bonds, with the addition of exemption from inheritance taxes.

At Duration

Il BTP Value June 2023 will last for four years. In addition, there will be a loyalty bonus 0.5% of the invested capital for those who will keep the investment until maturity.

Yield of the BTp Valore: What is the coupon?

The coupon, often a deciding factor in choosing to subscribe to this product, will be announced on June 1st. However, we already know that the coupons will be periodic and calculated according to pre-established and progressive rates.

The main difference compared to the previous BTp Italia is that the coupon will be variable and progressivebut NOT indexed to inflation or other parameters.

For now, in the absence of official returns, we can only speculate.

Considering that BTPs with a four-year maturity have a net yield of around 3.5%, we expect a similar yield for the Valore BTP.

But the Treasury is likely to offer a slightly higher total return, presumably between 4.25% and 4.5%, including a loyalty bonus, thanks to an incremental mechanism that would incentivize holding the investment to maturity.

But remember: this is only a guess. Actually, we should wait for the 1st of June.

Possible Risks

Once the characteristics of the new government bond have been explored, we should consider i possible risks. First of all, the volatilitywhich may vary depending on the duration of the investment.

If interest rates rise, the price of previously issued BTPs falls; if interest rates fall, the price of previously issued BTPs rises.

Another important risk is related to the issuing country (in this case, Italy). Issuer risk implies potential default or debt restructuring by Italy.

Despite its improbability, it should not be overlooked, as it could affect your investment, with a possible partial or total loss of the invested capital.

So, before investing, think carefully, taking into account all the possibilities and trying to fully understand these risks.

Is it advisable to invest in the BTp Valore June 2023?

You are here because you want an opinion on this matter. However, as of June 1, there is little information available.

It’s more cautious wait for further details to form a complete judgment, given that at the moment we do not know the coupon value, one of the most important aspects of the BTp.

The 0.5% loyalty bonus is well known, but if left uncontextualized, it offers little information. It does not differ much from other BTP issues aimed at retail savers.

I therefore cannot say whether or not this instrument is suitable for your investment strategy without knowing your personal and financial situation.

However, may I suggest that, if you already own a diversified portfolioit may not be necessary to add another such tool.

If, on the other hand, you wish to invest in this tool, I invite you to be prudent, as this could lead to excessive exposure to a single stock or country. It is always advisable to consider the diversification when thinking about investing.

Important Note: This article will be updated with new information as it becomes available. Please add this page to your favorites and visit Affari Miei again in the next few days for further details.

If you are looking for resources on the subject, here are some articles that may interest you:

If, on the other hand, you are trying to start your investment journey consciously as an independent investor, then I suggest you read more here:

See you soon.