Invest your young money to secure your financial future

Starting out in working life is often accompanied by numerous projects: studies, housing, travel or other personal aspirations. So it's the ideal time to lay the foundations for financial independence and prepare for the future. By investing early, you can take advantage of the cumulative effect to grow your capital over time. This strategic approach helps you to achieve your goals and ensure long-term financial stability. For those looking for advice on investing, a well thought-out strategy from the outset can make all the difference to achieving your goals and ensuring long-term financial stability.

Investing your money at a young age offers unique opportunities to build up your assets over the long term. One of the main advantages is the effect of compound interest, where reinvested gains gradually increase the total value of capital. A longer investment horizon also helps to cushion market fluctuations and optimise investment performance. By starting early, you can also gain a better understanding of how investments work and prepare to make more informed financial decisions. Identifying the best investment depends on your objectives and profile, so careful thought is essential.

It's important to remember that any investment carries risks, including capital loss, so it's essential to make sure that the choices you make match your objectives and personal circumstances.

In France, the legal age for investing is 18, corresponding to the age of majority. At this age, a person can open a securities account, subscribe to financial investments or invest in funds. This marks an important step towards financial independence and access to wealth-building opportunities.

From the age of 18, you can :

• Open a securities account: this allows you to buy, sell and manage financial securities such as shares, bonds or mutual funds.
• Investing in financial products: You can invest in financial products such as life insurance, share savings plans (PEA) or passbook savings accounts from the age of 18.
• Investing in funds: Whether mutual funds, index funds (ETFs) or other investment products, the age of 18 gives access to a wide variety of options.
• Buying shares on the stock market: At 18, you can invest in the stock market and buy shares in companies listed on the stock exchange, which allows you to participate in the economic life of the company.
• Participating in property investments: From the age of 18, you can invest in property, either directly by buying a property or indirectly through products such as SCPIs (Sociétés Civiles de Placement Immobilier), which allow you to invest in property assets in a simple and accessible way.

Financial investments involve risks. It is essential to fully understand the products in which you are investing before making any decisions.

When you are new to investing, there are several strategies you can consider, depending on your financial objectives and risk tolerance. By investing regularly and diversifying your portfolio, you can reduce risk while maximising opportunities for return. Keeping yourself constantly informed about investment options and taking your time horizon into account will enable you to adapt your choices to suit your short- or long-term objectives.

Here are a few options to consider:

• Investment funds : Investment funds, whether mutual funds or index funds (ETFs), allow you to diversify your portfolio by investing in different assets. This diversification can potentially reduce overall risk while allowing you to benefit from financial market growth.
• Private equity: private equity involves investing in unlisted companies. Although this type of investment carries risks, it can offer attractive returns over the long term, particularly by targeting sectors with high growth potential, such as technology, healthcare or renewable energies. Platforms such as Eurazeo Wealth Solutions provide access to dedicated investment funds, with management available from as little as €10,000.
• Participative real estate investment: For those who wish to invest in real estate but do not have the funds to buy a property, participative real estate allows them to contribute to collective real estate projects for more accessible amounts. This offers the opportunity to benefit from property yields without having to invest directly in a property.
• Equities: Investing in equities can offer the prospect of higher returns, particularly by investing in companies with strong growth potential. However, this strategy also involves greater risk, making it an option to be considered carefully.
• Bonds: Investing in bonds allows you to diversify your portfolio while providing a relatively stable source of income. Although returns are generally lower than those from equities or private equity, bonds carry a lower risk, which can be attractive to young investors looking to minimise their exposure to fluctuations in the financial markets.

Investing your money young requires a considered approach, careful risk management and in-depth knowledge of the markets to ensure lasting results.

Today's digital tools offer a wealth of opportunities for young investors. Online platforms make it easy to manage your investments, access financial advice and track your portfolio in real time. Whether through applications or investment simulators, technology is making investing more accessible to young people. These solutions also offer detailed analyses and personalised alerts to help investors make more informed decisions and better understand market trends. Being well prepared and understanding the mechanics of investing is the key to better risk management.

It is essential to understand the fundamental principles of investment and to take precautions to avoid risks.

• Start early: Investing young allows you to take advantage of the effect of compound interest to maximise returns. The earlier you start, the more you can accumulate over the years, benefiting from long-term growth. However, it's important to understand the risks associated with each type of investment before making a commitment.
• Diversify investments : Diversification is a key rule for reducing risk. By spreading your investments across different asset classes, you minimise the impact of fluctuations in a single sector or a particular asset. This balances returns and better protects your portfolio.
• Adopt a long-term strategy: Long-term investing is an effective way of overcoming periods of market volatility. By holding your investments for several years, you allow your portfolio to recover from market downturns, while enjoying stable growth over the long term.
• Educate yourself financially and find out about the risks: Before investing, it's crucial to educate yourself and fully understand the financial products in which you are investing.

As a young investor, it is essential to avoid certain common mistakes to maximise your chances of success. One of the most common mistakes is jumping in without fully understanding the mechanics of investing, which can lead to impulsive and risky decisions. Failing to diversify your portfolio can also expose you to significant losses if one sector or asset performs badly. What's more, it's important not to give in to the temptation to follow untested advice or to commit to overly complex investments without a solid foundation. Another common mistake is to overlook the risks involved in investing, thinking that gains are guaranteed. Finally, ignoring the importance of long-term management and seeking quick results can lead to hasty choices.

To invest your money successfully at a young age, you need a considered approach, good preparation and prudent risk management.