Cetes: What they are, How to Invest, and Why (2026 Guide)

Federal Treasury Certificates, known as Cetes, are investment instruments issued by the government through the Ministry of Finance and Public Credit. These certificates represent government-issued debt and are considered one of the safest financial instruments.

Cetes are primarily used as a low-risk investment vehicle. Investors can acquire these certificates to obtain attractive returns without taking on significant risks. Cetes offer a secure way to invest and are a popular option for both individuals and financial institutions.

Features of Cetes

Cetes have several distinctive features that make them attractive to investors. Below are some of the main characteristics of Cetes:

• Flexible terms: Cetes are available in different terms, ranging from 28 days to 364 days. This allows investors to choose the term that best suits their financial needs and goals.
• Competitive returns: Although Cetes are considered a low-risk investment, they offer competitive returns compared to other low-risk investment instruments. Cetes returns are linked to the Bank of Mexico's benchmark interest rate, ensuring investors receive a return consistent with market conditions.
• Liquidity: Cetes can be bought and sold in the secondary market, giving investors the option to liquidate their investment before maturity. This provides flexibility and liquidity to investors who may need their money before the certificate reaches its maturity date.

How much does it cost to invest in Cetes?

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Investing in Cetes is accessible to different types of investors, as it does not require a large amount of initial capital. The minimum amount of investment in dividends can vary depending on the financial institution or investment platform used, but it is generally quite accessible. Some financial institutions allow minimum investments.

Furthermore, investing in Cetes does not involve paying additional commissions or fees. This means that the returns obtained are net and are not affected by additional charges. However, it is important to note that Cetes are subject to tax payments on the returns obtained, in accordance with current tax legislation.

How much can I earn by investing in Cetes?

The returns that can be obtained by investing in Cetes vary depending on several factors, such as the investment term and current interest rates. Cetes offer attractive returns compared to other low-risk investment instruments, making them an appealing option for investors seeking a balance between security and return.

It is important to note that Cetes returns are subject to taxes. The returns obtained are considered profitable passive income and are subject to Income Tax (ISR). The tax rate varies according to the amount of returns and current tax legislation.

What is the best term for Cetes?

The choice of investment term for Cetes depends on each investor's financial goals and individual needs. Cetes are available in terms ranging from 28 days to 364 days. Below are some factors to consider when choosing the investment term for Cetes:

• Investment horizon: It's important to consider your investment horizon, meaning the period you expect to hold the investment. If you have a short-term investment horizon, a shorter term, such as 28 days, might be more suitable. On the other hand, if you're looking for a longer-term investment, you could opt for a longer term, such as 364 days.
• Interest rates: It's advisable to pay attention to the prevailing interest rates when investing in Cetes. Interest rates can vary over time and may influence the returns you obtain. It's possible that at certain times, interest rates may be more attractive for short terms, while at other times, they may be more attractive for longer terms.
• Flexibility: It's also important to consider the flexibility you desire with your investment. Shorter terms offer the possibility of accessing your money more quickly, while longer terms can provide greater stability and predictability in returns.

Is it better to invest in Cetes or mutual funds?

The choice between investing in Cetes or guaranteed investment funds mutual funds depends on several factors, such as the investor's risk profile and financial goals. Below are some considerations to keep in mind when comparing Cetes and mutual funds:

• Risk and security: Cetes are considered a low-risk investment, as they represent government-issued debt. Mutual funds, on the other hand, can have different levels of risk, depending on the assets they invest in. It's important to assess the level of risk you are willing to take and find a balance between security and return.
• Returns: The returns you can obtain by investing in Cetes are linked to the benchmark interest rate, while mutual fund returns depend on the performance of the underlying assets. Mutual funds offer the potential for higher returns, but they also involve a greater level of risk.
• Diversification: Mutual funds allow for investment diversification by investing in a variety of assets. This can help reduce risk and improve return potential. Cetes, on the other hand, represent an investment in government debt and do not offer the same diversification as mutual funds.

In conclusion, the choice between investing in Cetes or mutual funds depends on each investor's individual goals and preferences. Cetes are a safe, low-risk option, while mutual funds offer the potential for higher returns but with a greater level of risk.

Benefits of investing in Cetes

Investing in Cetes offers several benefits to investors. Below are some of the main benefits of investing in Cetes:

1. Security: Cetes are considered one of the safest financial instruments. As they are issued by the government, they represent debt backed by the country's financial strength. This provides investors with greater security and peace of mind.
2. Attractive returns: Despite being a low-risk investment, Cetes offer attractive returns compared to other low-risk investment instruments. Cetes returns are linked to the Bank's benchmark interest rate, which ensures investors receive a return consistent with market conditions.
3. Liquidity: Cetes can be bought and sold on the secondary market, which gives investors the option to liquidate their investment before maturity. This provides flexibility and liquidity for investors who may need their money before the certificate reaches its maturity date.

What are the risks of Cetes?

Although Cetes are considered a low-risk investment, there are some risks that investors should be aware of. Below are some of the main risks associated with Cetes:

1. Interest rate risk: Cetes returns are linked to the Bank's benchmark interest rate. If interest rates decrease, Cetes returns may also decrease. Conversely, if interest rates increase, Cetes returns may increase. It's important to note that interest rates can change over time and may affect Cetes returns.
2. Inflation risk: Inflation is another factor to consider when investing in Cetes. If the rate of inflation is higher than the returns obtained from Cetes, investors' purchasing power may be affected. It is important to evaluate the impact of inflation on returns and consider other investment options if high inflation is expected.
3. Tax risk: Returns obtained from investing in Cetes are subject to Income Tax (ISR). It is important to consider the impact of taxes on expected returns and account for tax payments when evaluating investment profitability.

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Conclusion

Cetes are a safe and reliable investment option in Mexico. They offer an accessible way to invest with attractive returns and flexible terms. However, it's important to consider the risks and explore other investment options based on each investor's financial needs and goals.

If you're looking for profitable investments beyond Cetes, options like mutual funds or real estate investment platforms, such as Domoblock, can be considered. The key is to carefully evaluate expected risks and returns, and make informed investment decisions.