Presentation of different types of financial investments

The French are historically attached to life insurance and regulated savings booklets. However, these supports have become less and less interesting in recent years. The phenomenon comes, among other things, from the weakness of interest rates.

Thus, households now envisage alternatives. In addition, they currently have access to different types of financial investments.

What is a financial investment ?

By definition, financial investment is to inject your savings into a potentially remunerative operation over a given period. This appellation is often preferred to the term investment for savers. Investing involves promising profitability, high risk and long horizon.

However, the duration also makes it possible to decide between Different types of financial investments.

In other words, an investment is more risky and less liquid, but displays an attractive potential return. The placement is, however, more secure and less profitable. In addition, the liquidity of savings fundamentally depends on the chosen financial product.

It is generally low, if you are looking for important gains. Conversely, more available funds offer few remuneration. Discover this guide to find out where to invest your money.

It is also necessary to differentiate financial investments and supports (or solutions) of investments. The latter are offered by economic players such as banks, brokers, life insurers … On the markets closed to individuals, real financial investments will be carried out by these institutional investors. You can only acquire shares of their portfolios.

That said, this nuance has no major impact on the savings system.

What are the different types of financial investments ?

Today you have access to a myriad of types of financial investments. This diversity is explained in particular by the dynamism of the market and the multiplication of mixed formulas. You will even have difficulty finding a contract exclusively made of funds in euros in life insurance.

From now on, professionals in the sector systematically integrate UC (units of account) in these supports.

It is nevertheless possible to distinguish several categories of investments depending on the assets considered and savings strategies. Thus, individuals have the choice between:

• Stock market investments (title account, PEA, UC, etc.);
• Banking booklets (booklet A, young booklet, LDDS, LEP, etc.);
• Savings (PER, CEL, PEL, PERP, etc.);
• Real estate investments (SCPI, OPCI, SIIC, etc.).

With the decline of classic euros funds, life insurance tends to integrate the first category. The units of accounts are indeed translated into investments in the financial markets. Likewise, dynamic euros funds are largely based on stock exchange investments.

Stock market investments

Most often, individuals carry out stock markets via a title account or a PEA (equity savings plan). These solutions make it possible to invest in actions directly or through UCITS (collective investment organizations in securities). With a fund, you can invest in renewable, transport, raw materials … The potential return is interesting, but the investment horizon will vary according to your interlocutor and your strategy.

It is strongly recommended to consider placement over at least five years. Taxation is indeed more advantageous from the fifth year. In this case, you will only be payable by social security contributions, or 17.2 %, on your earnings.

The taxation will, however, be 17.2 % + 22.5 % on a withdrawal before the 2 years of the account.

Banking booklets

Despite the drop in returns, the bank booklets are still acclaimed in France. These types of financial investments are especially appreciated for their reassuring and familiar side. As a reminder, booklet A is historically the favorite savings of French households.

In 2019, regulated savings booklets collected some 16 billion euros in outstanding.

Liquids and non -taxable, these solutions are particularly useful for a substantial expenditure or in the event of an unexpected. They represent, ultimately, precautionary savings rather than real investments. However, funds do not involve deposit fees despite remuneration less than 1 %.

Savings

Basically, savings constitute investments in the very long term. They are thus feared for their low liquidity. However, this immobilization will allow better return and tax advantages. In addition, anticipated releases are possible in the event of disability, over -indebtedness, death of the spouse or PACSé partner ..

Savings are accessible to any type of profiles, without income, age or professional situation. In addition to this characteristic, they are secured like regulated booklets. You can benefit from a significant retirement supplement.

Real estate investments

Stone is traditionally considered a safe bet. It is the same for the real estate investments. However, these supports stand out by their affordable side and the pooling of risks.

Instead of buying a property, you can acquire portfolio shares including buildings, offices, shops, etc.

On the other hand, you will not have to worry about the costs related to a direct purchase. These charges will be included in the management fees. In addition, you can benefit from interesting yields in the field.

However, it will be necessary to follow the investment horizon recommended by managers to benefit from advantageous remuneration and taxation.