French Investment Fund: Creating sustainable value for the real economy

French investment funds play an essential role in supporting the local economy. By mobilising investors' savings in innovative or growing French companies, they play an active role in industrial recovery, ecological transition and regional dynamism. They also make it possible to structure a diversified financial portfolio, backed by tangible assets with high value potential.

All investments carry risks, particularly the risk of capital loss. It is essential to fully understand the operation and characteristics of each vehicle before subscribing.

A French investment fund is a collective investment vehicle that raises capital to finance companies, projects or assets located mainly in France. These funds can invest in listed equities, private equity, real estate, private debt or thematic assets linked to innovation or the energy transition.

Managed by management companies approved by the Autorité des Marchés Financiers (AMF), these funds offer investors targeted exposure to the French economy while benefiting from professional management and integrated diversification.

Supporting national growth

By investing in French funds, you play an active part in financing projects with a real economic impact: job creation, industrial relocation, development of technology and strengthening of energy sovereignty.

Diversifying and reducing international risk

By focusing on local companies or regional projects, you limit your exposure to the volatility of international markets, while benefiting from sector diversification: healthcare, energy, agri-food, construction, etc.

Benefit from attractive tax incentives

Some funds, such as FCPIs and FIPs, allow you to reduce your income tax in return for a long-term commitment. What's more, some French funds can be held in a PEA or life insurance policy, optimising capital gains tax.

Thematic funds

Targeting sectors of the future (cybersecurity, biotechnology, green infrastructure), these funds enable investors to position themselves in megatrends while supporting French champions.

FCPI and FIP funds

Specially designed to finance innovation or regional development, these funds are eligible for tax benefits in return for a minimum holding period of 5 to 7 years.

French SCPIs

Invested in French commercial property, SCPIs generate potentially regular income, backed by tangible, long-term assets.

Private equity funds

By co-investing in unlisted SMEs alongside fund managers such as Eurazeo, you gain access to French companies in the process of transformation or accelerated growth.

SRI and ESG funds

These funds apply a defensive selection based on environmental, social and governance criteria. Their French assets are chosen for their alignment with the principles of sustainable development.

All investments in French funds are subject to various risks:

• Market risk : sensitivity to national economic conditions
• Liquidity risk: possible lock-up period depending on the type of fund
• Credit risk: especially for bond funds
• Sector risk : high exposure to a single sector (healthcare, tech, etc.)
• Management risk: quality of management team and allocation strategy

• Define your investment objectives : growth, inheritance, additional income
• Choose your investment vehicle: PEA, life insurance, securities account
• Analyse fees, duration, liquidity and past performance
• Check the labels (SRI, Relance) and the fund's ESG policy

We recommend that you work with an asset management adviser to align your strategy with your risk profile and time horizon.

Investing in a French fund is not simply a question of profitability. It's a commitment to the real economy, industrial sovereignty and the major challenges of tomorrow. It's also an opportunity to include in your portfolio assets that are rooted in the regions, deliver value and are in line with the principles of responsible capitalism.

To find out more, read our articles on private equity, SRI funds and top-of-the-range life insurance.

This article has been written by Eurazeo Global Investor for information purposes only. It does not constitute investment advice, a solicitation or a public offer. Past performance is not indicative of future performance. Any investment entails risks, particularly of capital loss, volatility and illiquidity. It is essential to consult the regulatory documentation before making any investment decision.