Before making any financial investment, OptiFi recommends to build a “security mattress” which would stay in bank savings account such as the Livret A, the Livret de Développement Durable and other deposit accounts.
Remuneration of these bank savings accounts are currently low. It thus may be wise to assess the part of your savings which can be devoted to the diversification of your wealth through financial investments which will bring risks of fluctuation, but also delivering a higher expected rate of return.
Financial assets are often contrasted with real estate assets, especially in France where this asset class is strongly rooted to the local culture.
Specifics of financial investments
If bank savings must allow you to face unforeseen events, the part of your savings that you can devote to financial investments must be considered in the medium to long term. The counterpart will be a better valuation of your savings, either by growing your capital or by yielding revenues… or even a combination of both. As such, financial investments should be considered for retirement, along with strategies to optimise inheritance.
These investments require to design and implement strategy in order to meet your future cash flow needs, your risk appetite as well as your investment horizon.
Different supports exist: each one hosting particular assets. It is thus often necessary to combine several supports to serve the desired strategy.
Various financial investment vehicles
The “Assurance-Vie” can not be translated into “life insurance” per se as the capital invested remains available at any time. Such a vehicle allows to meet different objectives: grow your capital, provide additional income, imrpove the transmission of your wealth.
The Assurance-Vie offers a wide range of mutual funds covering different regions & strategies, along with a specific fund called “fonds euro”. The latter is a guaranteed capital fund.
PEA is a specific stock account for French and / or European companies.
The geographical constraint makes it possible to benefit from a reduced taxation: capital gains are exempt from income tax beyond a holding period of 5 years.
FCPR are specific Private Equity funds. Those will allow you to invest in the real economy, financing small and medium-sized businesses.
These funds offer a decorrelation to traditional (listed) financial markets. The expected rate of return is higher due to lower liquidity, hence recommended only if you can lock-in some of your funds over a 6 to 10 years horizon.
The information published on optifi-hfm.com website is generic and does not take your personal situation into account. As such, this information is not a personalised recommendation. This information does not constitute a financial advisory service or an incentive, in any form whatsoever, to buy or sell financial products. The reader remains solely responsible for the transactions he might carry out. No recourse against the publisher of optifi-hfm.com website will be possible and its responsibility may in no case be engaged in the event of an error, omission or untimely investment on the part of the reader.