Investing a large sum of money: Strategies for investing 100,000 euros wisely

Investing a capital sum of 100,000 euros is a structuring step in a wealth management trajectory. At this level of investment, a methodical approach combining diversification, risk management and tax optimization is essential. The allocation of capital between different asset classes - listed, unlisted, real estate or money market - must be based on clearly defined objectives, the investment horizon and the investor's risk profile.

Faced with a constantly changing economic environment, professional guidance is strongly recommended to build a coherent, resilient asset allocation that will deliver performance over the long term.

With a capital of 100,000 euros, you have access to investment solutions usually reserved for well-informed customers. This allocation capacity opens the way to :

• Efficient portfolio diversification, limiting specific risks.
• Exposure to differentiating asset classes, including unlisted securities and indirect real estate.
• Optimization of risk-adjusted returns, thanks to fine-tuned management of the investment strategy.

This approach must be part of a global asset management approach, serving defined objectives - long-term value enhancement, income generation, transmission or protection of capital against inflation.

Allocating a large sum of money requires a combination of complementary solutions, based on liquidity, expected profitability and the level of risk accepted.

Financial markets - equities, bonds, mutual funds

• Equities: Direct investment in equities enables you to participate in the value creation of listed companies. It offers significant potential returns over the long term, but implies high exposure to market volatility.
• Bonds: Whether sovereign or corporate, bonds are a diversification solution providing visibility on income streams. They are sensitive to changes in interest rates and issuer credit quality.
• Mutual funds (UCITS, ETFs) : By investing in funds, investors gain access to professional, diversified management adapted to different risk sensitivities.

Banking products - savings and life insurance

• Livret réglementé (regulated savings account) : Short-term, fully-liquid investment, suitable for building up a safety nest, but offering limited returns.
• Life insurance: A long-term savings product offering attractive tax benefits. It allows you to invest in a wide range of products (euro funds, unit-linked products), in line with your profile and objectives.

Real estate - direct or pooled investment

• Rental investment : Residential or commercial property remains a safe haven, generating recurring income. Regulatory, tax and management aspects must be taken into account.
• SCPI: As a collective real estate investment vehicle, SCPIs offer access to high-quality professional assets, with regular returns and fully delegated management.

Private equity - performance and long-term commitment

Private equity allows you to invest in unlisted companies in a growth or transformation phase. In return for a long investment horizon and reduced liquidity, this type of investment targets superior performance prospects.

Through its private equity solutions, Eurazeo offers access to large-scale, unlisted investment programs historically reserved for institutional clients.

Investing a significant sum involves rigorous management of the risks inherent in any investment decision:

• Market risk: price fluctuations on listed assets;
• Credit risk: creditworthiness of bond issuers;
• Liquidity risk: difficulty in disposing of certain assets (real estate, unlisted) in case of immediate need;
• Inflation risk: erosion of capital purchasing power over the long term;
• Concentration risk : excessive exposure to a particular sector or asset class.

An asset allocation based on rigorous diversification principles helps mitigate these risks.

Allocating 100,000 euros in the right way means building your capital around a multi-support allocation: liquid assets for security, bond products for income, growth assets for performance, alternative solutions for diversification.

This type of allocation aims to :

• Cushion market cycles.
• Improve overall risk/return profile.
• Be part of a long-term asset management strategy.

A coherent investment strategy is based on the evaluation of several parameters:

• Risk profile: cautious, balanced or dynamic.
• Investment horizon : short, medium or long term.
• Financial objectives: income generation, value enhancement, inheritance.
• Liquidity needs: anticipation of life events.
• Tax framework : integration of appropriate measures to optimize net yield.

The tax treatment of different investment vehicles can have a significant impact on net returns. Some schemes, such as :

• Life insurance (after 8 years).
• PEA (capital gains tax exemption after 5 years).
• Specific real estate schemes (Pinel, LMNP, etc.).
• Investment funds eligible for tax incentives (unlisted, PEA-PME).

The assistance of an advisor is recommended to structure the investment with a view to tax optimization.

Investing a capital of 100,000 euros is a strategic opportunity to structure your assets on solid, high-performance foundations. Rigorous management, based on diversification, risk control and tax optimization, enables you to meet multiple objectives: security, value enhancement and transfer.

This article was produced by Eurazeo Global Investor for information purposes only. It does not constitute a recommendation, offer or solicitation for any financial product. Before making any investment decision, investors are advised to consult their own legal, tax and financial advisors, and to refer to the regulatory documentation in force.

Past performance is no guarantee of future results. Any investment in private equity or private debt funds carries a risk of capital loss and low liquidity.