Where to invest your money? Find out how to invest successfully

Investing your money effectively is essential to growing your wealth. Whether in the stock market, real estate, financial investments or alternative investments, each option has its own advantages and risks. To invest successfully, it's important to diversify your portfolio, choosing assets that match your financial objectives and risk profile.

The aim of this guide is to present the different types of investments available, their advantages and risks, and to help you make the best choice for your financial goals.

Investing your money wisely not only preserves your purchasing power in the face of inflation, but also generates additional income. Different types of investment offer different returns, with different levels of risk and liquidity. For each individual investor, the choice of an investment must be tailored to his or her financial objectives, and strategic investment management can help achieve long-term results, such as financial independence or the building of a solid estate.

Secure investments enable you to preserve your capital while benefiting from solid guarantees. They are the ideal solution for those looking to grow their savings without taking on too much risk.

Passbook savings accounts: accessible, secure investments

Passbook savings accounts, such as the Livret A or the Livret de Développement Durable et Solidaire (LDDS), are secure investments. They offer immediate liquidity and capital protection. They are also tax-advantaged, since interest earned is exempt from income tax and social security contributions.

Life insurance: a solution for the future

Life insurance is also a popular investment for preparing for retirement or passing on capital. It generally offers two types of investment vehicle: euro-denominated funds, which provide a capital guarantee with moderate returns, and unit-linked funds, which are riskier but offer higher potential returns. This diversity enables investors to strike a balance between security and performance, depending on their objectives.

Dynamic investments enable you to aim for higher returns than more secure investments. However, these investments carry a higher level of risk, requiring careful management and a good knowledge of financial markets.

The stock market: equities and ETFs

For those looking to grow their money over the long term, investing in the stock market is an attractive option. Investing in large-cap stocks or ETFs (exchange-traded funds) can offer high returns. However, this type of investment involves risks, and can be subject to significant fluctuations depending on the financial markets. Careful management and a diversification strategy can help limit the impact of market volatility risks.

For novice investors, we recommend diversifying your portfolio by choosing ETFs that track the performance of several companies in different sectors.

Private equity: diversifying and boosting your portfolio

Private equity involves investing in unlisted companies. This type of investment offers the potential for high returns, as it enables you to support growing companies and participate in their development. It is an attractive option for investors seeking to diversify their assets and achieve attractive returns.

Eurazeo Wealth Solutions specializes in private equity, with funds starting at €10,000. Thanks to its expertise, the company offers individual investors the chance to participate in projects with high growth potential, while benefiting from professional advice to optimize their investment strategy.

It is important to note that dynamic investments, while offering potentially high returns, carry significant risks. Fluctuations in the financial markets can lead to losses, and there is no guarantee of profitability. Before investing in the stock market or private equity, it is essential to assess your risk tolerance and diversify your portfolio to better manage these risks.

Real estate is a preferred choice for those seeking to secure their assets while generating passive income.

Rental property

Investing in rental property enables you to generate regular income from the rents received. What's more, it offers the possibility of benefiting from tax exemption schemes, such as the Pinel law, which reduces taxes for rental investors purchasing new-build property. This type of investment allows you to diversify your assets while benefiting from the long-term value of real estate.

SCPI

The Sociétés Civiles de Placement Immobilier (SCPI) allows investors to invest in real estate without the constraints of rental management. Investors purchase SCPI units and receive income in proportion to the rents collected by the company. It's an ideal investment for those wishing to get into real estate with a more modest starting capital.

Choosing how to invest your money is based on a thorough analysis of your financial priorities. It's essential to take into account your objectives, your investment horizon and your risk tolerance to guide your decisions with complete peace of mind.

Define your investor profile

Before choosing where to invest, it's essential to determine your investor profile. Are you forward-looking, cautious, or willing to take risks for a higher return? Depending on your risk tolerance and objectives, your investment choices will vary.

Diversifying your investments

Diversification is a key strategy for reducing risk. By diversifying between secure investments (such as euro funds or passbooks) and more dynamic investments (such as equities or private equity), you can improve your portfolio's performance while limiting the impact of market fluctuations.

Read more: Best savings investments

Private equity is a strategic alternative to traditional investments, offering individual investors the opportunity to support growing companies and benefit from potentially higher returns. Eurazeo Wealth Solutions facilitates access to this type of investment, helping to boost and diversify investors' savings.

Investing in private equity via Eurazeo Wealth Solutions offers several advantages:

• Diversification: Access to companies operating in a variety of sectors, such as healthcare, technology or infrastructure, thereby reducing risk by diversifying the portfolio.
• Potential returns: Opportunities for higher returns than traditional investments, with access to fast-growing companies.
• Support: The expertise of professionals who select the best investment opportunities and support investors in managing their portfolios.
• Transparency: Access to detailed information on each investment, enabling individual investors to track the progress of their investments with complete confidence.
• Responsible investment: Opportunity to invest in projects aligned with environmental, social and governance (ESG) criteria, responding to the ethical concerns of certain investors.

Investing in private equity enables you to participate in the growth of innovative companies, while benefiting from specialized support and clear investment visibility.

Investing always involves a degree of uncertainty. Each type of investment has its own specific risks, which you need to understand before committing yourself. Managing these risks is essential to maximizing returns while protecting your capital.

Understanding risks before investing

Before investing, it's essential to take into account the different risks associated with investments, so you can make choices suited to your investor profile. Secure investments such as passbook savings accounts present little risk, but offer limited returns. More dynamic investments, such as equities or private equity, may offer higher returns, but their value may fluctuate and the capital invested is not guaranteed.

It's important to understand the risks before investing, and to only invest money that you're prepared to tie up for a certain period of time, or even to partially lose.

Private equity: a risky but promising opportunity

Private equity can be risky, not least because it involves long-term investments in unlisted companies with limited liquidity. However, investors who accept these risks can expect attractive returns. Eurazeo Wealth Solutions rigorously selects the companies in which to invest, and provides its clients with professional support to minimize the impact of risks.

There's no single answer to the question of where to invest your money. It all depends on your financial objectives, risk tolerance and investment horizon. For some, secure investments such as life insurance or savings books will be preferable. For others, a more dynamic strategy, including equities, rental property or private equity, will offer the prospect of higher returns.

By analyzing market data, economic indicators and risk assessments, investors can adjust their strategies and anticipate trends. A mastery of information guarantees enlightened capital management and maximizes return opportunities.