Growing your money: Building a diversified, resilient portfolio

In an ever-changing financial environment, growing your capital requires method, anticipation and discernment. It's not just a question of seeking the highest return, but of building a balanced allocation in line with your investor profile.

Diversifying investments, balancing security and performance, and optimizing taxation are all essential levers for transforming available savings into dynamic capital.

Before any decision is taken, a structured approach is required: clarification of objectives, assessment of risk profile, investment horizon, selection of asset classes.

Define clear investment objectives

Every project deserves its own strategy: building precautionary savings, preparing for retirement, financing a personal project or seeking additional income. Formalizing these objectives enables you to make consistent investment choices.

Know your risk tolerance

Understanding your appetite for risk is fundamental. Some investors will prefer stability, while others will accept increased volatility for a higher potential return. This is a key parameter in portfolio construction.

Diversify to stabilize performance

Diversification smoothes performance by spreading investments across different asset classes (equities, bonds, real estate, structured funds, etc.) and geographical zones. It is the foundation of a balanced allocation.

Enhancing the value of time through compound interest

Reinvesting the income generated by your investments (dividends, coupons, rents) helps accelerate the growth of your assets. Compound interest is particularly powerful over the long term.

Depending on the investor's profile and objectives, different investment solutions may be considered.

H3: Secure savings

Regulated passbook savings accounts and euro funds in life insurance policies enable you to build up your capital prudently. Although they offer a limited return, they provide appreciable security for short-term amounts or amounts awaiting allocation.

H3: Financial markets

Investing in equities via a securities account or a Plan d'Épargne en Actions (PEA) gives you access to the market's growth potential. ETFs offer a simple, accessible solution for investing in diversified indices, while keeping costs under control.

Bonds

Bonds - whether sovereign or corporate - offer regular fixed income (coupons) and a defined time horizon. They play a stabilizing role in a well-structured portfolio.

Real estate

Real estate investment (direct or via SCPIs) remains a traditional pillar of wealth management strategy. It enables you to receive regular income and enhance the value of a tangible asset over the long term.

Private equity

Private equity involves investing in unlisted companies in a growth or transformation phase. It offers the potential for high returns, in return for a long investment horizon and reduced liquidity.

Eurazeo offers private equity funds accessible from €10,000, giving private investors access to opportunities traditionally reserved for institutional investors.

Alternative assets

Commodities and cryptoassets can provide additional diversification. However, these more volatile or speculative investments must be integrated with moderation and discernment.

Efficient tax management makes a significant contribution to optimizing net yield.

Take advantage of current tax incentives

PEA, life insurance and certain real estate schemes (Pinel, LMNP) offer medium- and long-term tax advantages. They should be selected in line with the investor's profile.

Any investment involves a number of risks that need to be understood and anticipated.

Market risk

Financial markets are exposed to economic cycles. Appropriate diversification can help mitigate the effects.

Risk of capital loss

Certain assets may suffer lasting depreciation. Allocation must take this risk into account and adapt to fluctuations.

Liquidity risk

Some investments cannot be sold quickly without a discount. It is essential to adjust allocation according to liquidity needs.

Credit risk

When an issuer (government or company) is unable to meet its financial commitments, the value of bonds may be affected.

Political and regulatory risk

Legislative or tax reforms may affect the profitability of certain assets, particularly in international markets or in regulated sectors.

Growing your money requires an appropriate investment strategy, based on diversification, rigorous analysis of investment vehicles and proactive management. By relying on recognized partners, investors can access tailor-made solutions that reconcile potential performance and risk management.

Legal information
This article was written by Eurazeo Global Investor for information purposes only. It does not constitute investment advice, an offer to subscribe to a financial product, or tax or legal advice.
The information presented does not claim to be exhaustive. Past performance is not a reliable indicator of future performance. All investments carry a risk of capital loss and illiquidity. Please consult the fund's regulatory documentation before making any investment decision.