what units of account to choose to fight inflation?

With inflation approaching 5%, it’s hard to find an investment that will actually protect you from rising prices! Do you have life insurance and are looking for a way to limit damage? Or overcome the mark of 5%? Some unit-related supports can drive the counter crazy. But how to do it without risking without looking back?

Inflation reached 4.5% in March for the year, while Livret A showed 1% and LEP 2.2%. Thus, regulated savings accounts do not allow protect your savings from rising prices. There are other investments that can do this, including the increasingly popular direct real estate funds, as well as, of course, life insurance (UA) funds. But you still have to choose the right supports!

The return on guaranteed euro funds averaged 1.3% in 2021. Last year they returned an average of 9%. Except, share of contributions to UC reaches 40% year to date. A momentum that is accelerating as it was 39% in 2021, 35% in 2020 and 28% in 2019. But how do you balance income above inflation at UC without taking on too many risks? One thing is for sure, don’t put all your eggs in one basket.

Real Estate Funds: Safe Value

Among the various types of units of account in which it is profitable to invest, we obviously find SCPI. They have wind in their sails both in direct investment and indirectly through UC life insurance. Real Estate Investment Company (SCPI), also known as pierre papier, allows you to buy real estate such as offices, parking lots, shops or even warehouses to rent or resell. lifeguard becomes owner of the capital share of the SCPI and thus receives a portion of the rent received by SCPI in the form of dividends, depending on its investment. “Real estate is clearly not in the game. In practice, SCPI provides regular profitability with a stable asset value,” explains Gilles Belloir, director of Placement-Direct.

SCPI provide regular profitability with a stable value of assets

The vision is shared by Stellain Cohen, president of Altaprofits, who adds: the insurer takes the risk. Indeed, when you invest in SCPI through a life insurance contract, it is the insurer who owns the shares and so he will take care of their resale at your request. Thus, the insurer guarantees the liquidity of SCPI shares (provided that you keep your shares for more than 3 years).

Conversely, with direct investment, the liquidity of such investments is not guaranteed. In the event of an imbalance between supply and demand during direct investment and if you wish to resell your shares; you will have to sell them below their value and accept that they will remain locked up for three to six months.

SCPI: benefits from life insurance taxation

Income from SCPI capitalized under a life insurance contract is tax-free until the amount is withdrawn. After 8 years, they enjoy preferential life insurance taxation in case of failure. The only drawback to keep in mind is that the amount of SCPI available is much more limited under a life insurance contract than under a direct investment.

A game. Investing in SCPI: directly or through life insurance?

Spectacle. SCPI offered very good returns last year, with an average rate of 4.45% and even 4.49%, according to an update from the French Association of Real Estate Investment Companies (Aspim). In 2021, real estate investments and real estate funds are presented 11% investment in accounting units.

Investing in Rentals: Are SCPI Fees Really Too High?

Equity funds… a condition for diversification

For long-term profitability, you need a good industry and geographic diversificationsays Gilles Belloir. Therefore, after real estate, investors have every reason to be interested in growth stocks especially in the technology sector. These are companies with good earnings growth prospects. Putting some of your savings into this type of investment, preferably more diversified funds, is certainly subject to the vagaries of the stock market, but the risk can pay off in the long run. You should not only watch the performance for one year, but also learn about the returns for the last 3 years. It is also desirable to compare the performance of the fund with other funds of the same category, adds Gilles Belloir.

Find out about income for the last 3 years

Spectacle. In the equity fund department, returns are so disparate that averages don’t always make sense… Let’s take concrete examples. First: The Thematics Metafund managed by Natixis Investment Managers, which consists mainly of stocks of technology companies, has an annualized return of 15.47% (over 3 years). In comparison, funds in the same category showed lower annualized returns on average (3.56% less). Another example is the AXA-managed AXAWF Fram Robotech A Cap EUR fund, still operating in the tech sector, which recorded a return of 26.09% in 2021 on a 3-year annualized return of 17.83%.

Even if you are also exposed to stock market fluctuations, you also often have the option in recent life insurance contracts to invest in shares listed directly in your contract. As a reminder, 2021 has been a very good year for the CAC40. After a slight decline in 2020 (-7%), it recorded an impressive growth of +28.85%.

Life insurance: buying shares, a good plan?

save up to 50% under the borrower’s insurance

Government bonds: to curb inflation

Considered less risky government bond fund show yields that are of course less good, but still quite good,” says Gilles Belloir. And for good reason: most often they closely or remotely monitor price increases. Inflation-indexed government bond funds are a good investment in the long run and will rise in value if inflation exceeds economic actors’ expectations. In recent months, management companies have launched several such funds. In particular, we can mention the Global Inflation Short Duration of Groupama Asset Management, which mainly invests in short-term bonds (from 1 to 5 years), indexed to inflation and issued by OECD countries.

Spectacle. These funds can offer performance above the rate of inflation. We can cite, for example, the Lyxor Core Euro Government fund, established in 2017, which recorded a return of 6.14% in 2021 with an annualized return of 4.76% over three years.

Index funds to follow the stock market

Index funds (ETFs or trackers) are also indexed stock market performance and allow, in particular, to obtain the same changes as reference indices, such as CAC 40 or S&P 500. Compared to the equity funds mentioned above, they tend to provide an immediate response, Stellaine Cohen explains. According to her, in order to get a good return while reducing the risk, the investor is interested in combining the euro fund with several types of units of account managed under the pilot management: part in the eurocroissant fund or SCPI and part in the index. facilities. Index funds are available, in particular, from online brokers such as direct placement, Meilleurtauxplacement, Linxea or Altaprofits, in free or experimental management.

Spectacle. Depending on market hazards, the performance of index funds varies with market turmoil, and it is obviously possible to lose invested capital. However, when the stock market indexes smile, these funds perform at the level of the financial markets and, therefore, far above inflation. A striking illustration in 2021, for example, with the Lyxor MSCI World fund: it includes 1650 companies from 26 developed countries and showed a return of 31.16% in 2021 and even a three-year average performance of 15.40%. Or Amundi ETF MSCI Nordic, which reached 28.37% in 2021.

At the moment, 2022 is not so favorable. CAC40 is in the red. And these funds, copying the stock market indices, logically follow the movement … But the stock market has a long-term perspective in an attempt to achieve more than inflation.

Savings: How to choose the right ETF to invest in the stock market?

Why not pilot control?

If all these investment vehicles satisfy your curiosity, but you don’t have the time or knowledge to invest in them, you can opt for pilot management. Allocation and arbitrage decisions are made by your advisor, obviously according to your investor profile. When choosing a balanced profile, the pilot project management efficiency over the past year reached 6.41% for BforBankVie, 5.79% for the Boursorama Vie contract and 8.68% for Fortuneo Vie.

Life insurance: Comparison of offers

Leave a Comment