Tips for investing : The best strategies

When approached strategically, financial investment can be a powerful lever for increasing your wealth. This guide offers sound advice on best investment practice, integrating methodological and analytical approaches. By exploring various portfolio optimisation techniques, we will emphasise the importance of diversification, risk analysis and dynamic market evaluation.

Also read: Investing in 2025: Discover the Best Opportunities

Investing requires a thorough understanding of the basic principles involved in making informed decisions. Once you have mastered these fundamentals, it becomes easier to choose the investments that match your objectives.

Why invest?

Investing means putting your money to work to achieve your long-term financial goals. Whether you want to build up capital, plan your retirement, finance your children's education or diversify your income, investing offers a multitude of opportunities. Unlike traditional savings, which lose value with inflation, a well-managed portfolio can generate superior returns over the medium and long term. Finding the best investment depends on your objectives and risk tolerance, but a well thought-out strategy is essential.

The main asset classes

Before you start, it's essential to be familiar with the different investment options. Each type of investment offers specific advantages, but also distinct levels of risk. Here is an overview of the main asset classes to consider:

• Equities: Shares represent an ownership stake in a company. They offer high growth potential, as the value of shares can increase significantly as the company grows. However, they are often subject to high volatility, which means that their value can fluctuate rapidly depending on market conditions and the company's performance.
• Bonds: Unlike equities, bonds are debt securities issued by companies or governments. They offer fixed returns and are often considered less risky than equities, as they are generally guaranteed by the issuing entity. Bonds can be an interesting option for those wishing to secure part of their capital while generating regular income, particularly in the form of interest.
• Real estate: Investing in real estate is an option that offers stable and regular returns, particularly in the form of rental income. What's more, property values can rise over time, offering long-term capital appreciation. Property is often seen as a 'safe haven' investment in times of economic uncertainty, but it can also require active management, particularly in terms of repairs and rental management.
• Private equity: The private equity refers to investments in unlisted companies. This type of investment makes it possible to participate in the growth of innovative companies with high potential, but which are not accessible via the traditional financial markets. Private equity investors can invest directly in a company or via specialised funds, such as those offered by Eurazeo Wealth Solutions. Although the risks associated with this type of investment are higher, the potential returns can be significant due to the high growth potential of these companies.

Investing requires a considered and structured approach. By applying targeted strategies, you can maximise your chances of success while effectively managing the risks associated with your investments.

Portfolio diversification

Diversification involves spreading your investments across several asset classes, economic sectors and geographical areas. This strategy reduces the risks associated with the volatility of certain markets. Eurazeo Wealth Solutions offers diversified funds that include growth sectors such as technology, healthcare and infrastructure. By combining several sectors, you increase your chances of return while minimising overall risk.

Active management and regular monitoring

Active management involves regularly monitoring your investments to adjust your portfolio in line with market conditions. This approach allows you to seize opportunities as they arise, while minimising the impact of market fluctuations. Regular monitoring and strategic adjustments allow you to maximise potential returns while remaining aligned with your long-term objectives.

Taking a long-term view

Long-term investments are often the most profitable, as they smooth out market fluctuations. By taking a long-term view, you can take better advantage of asset and company growth, even if this requires patience. This strategy helps to overcome periods of volatility and maximise returns over the long term.

Understanding and managing risk

Investing always involves a degree of risk. Before committing yourself, it is essential to understand the different types of risk to which you could be exposed:

• The risk of capital loss: Investing involves risks, including the possibility of capital loss, which means that the investor may lose all or part of the money invested. Fluctuations in financial markets, economic conditions and unforeseen events may influence investment performance.
• Lack of liquidity: Some investments, such as private equity, require a long-term commitment, limiting rapid access to your funds. It is therefore crucial to ensure that you can afford to tie up your capital over several years.
• Sectoral risks: Each sector or region has its own vulnerabilities, be they economic crises, regulatory changes or industry-specific fluctuations.

A rigorous assessment of these factors will help you make informed decisions, diversify your investments properly and implement risk management strategies to protect your capital.
 

Private markets offer retail investors an attractive alternative to traditional financial markets, providing greater diversification and high potential returns. Eurazeo Wealth Solutions is positioning itself as a key player in facilitating access to these investments, which have historically been reserved for institutional investors.

Why choose private markets to invest?

Private markets, including private equity, private debt and real assets, are increasingly attracting investors looking for potentially higher returns than public markets. By investing in unquoted companies, infrastructure projects or property assets, investors can benefit from the growth of sectors that are less exposed to stock market fluctuations. This strategy generally has a long-term horizon, allowing investors to benefit from the gradual increase in value of assets. However, there is a degree of illiquidity associated with these investments, as the assets are often difficult to sell quickly.

Greater accessibility for retail investors

Eurazeo Wealth Solutions has put in place solutions that allow individual investors to invest in funds from as little as €10,000, making these investment opportunities more accessible. This approach aims to meet the needs of a new generation of investors wishing to diversify their wealth into unlisted assets.

Successful investing requires strategic and disciplined management. By adopting a methodical approach, you can minimise risk and maximise your chances of long-term success. For those wishing to invest their young money, starting early allows you to take advantage of the compounding effect and increase your financial opportunities.

Start with a gradual approach

There's no point in trying to master everything from the outset. Investing gradually, starting with modest amounts, allows you to familiarise yourself with market mechanisms and limit the risks associated with any beginner's mistakes.

Set clear limits

One of the fundamentals of investing is never to invest more than you can afford to lose. This includes setting up precautionary savings and defining a maximum investment threshold.

Show discipline

A methodical and regular approach is essential. Whether it's reinvesting gains, maintaining diversification or following a set plan, discipline is the key to long-term success.

Use the right tools

Today, there are a number of tools that can simplify and optimise your investment process. Portfolio management applications allow you to track your investments in real time and see how your assets are evolving. Educational platforms offer a wealth of resources to help you learn more about the financial markets and different investment strategies.

Anticipating the unexpected

Investing is a dynamic process. Be prepared to adjust your choices according to market conditions or personal changes. Flexibility is the key to adapting to the ups and downs of the economy.