Managing your capital

4 March 2020

Investing, an alternative to saving?

Is it easy to invest? Is it available to everyone? Is it risky?

Do you want to continue to enjoy life? Whatever the nature of your projects, your needs or your desires: over the long term, investing could offer you a higher return than saving.

Saving, yes, but..

It’s necessary to have savings (equivalent to 3 to 6 months of your net salary) to deal with unforeseen circumstances.                     

However, in today's environment of persistently low interest rates, you lose purchasing power when you put your money in a savings account.

So if you have the option, it's best to save for short-term expenses and invest for later. 

Investing: a good alternative?

Is it cost-effective? Investing can generate a higher return than savings, especially over the long term.

Is it risky? There is the risk of little or no profit, or the loss of some (or all) of your capital. 

How can you limit this risk? First by diversifying your portfolio: choose the solutions that suit you, according to your investment profile and your attitude to risk. Second, by making long-term investments: 5 to 7 years minimum.

Invest little by little...

Do I need to be rich to invest? No. 25 euros per month is enough.

If you're reluctant to take the plunge for fear of bad timing?

Have you thought about periodic investment?

4 good reasons for periodic investment
What should you invest in?

Risk and return on investment are closely intertwined. The more shares in a fund, the higher the risk that investment has. However, a fund with a large proportion of shares can also give a higher return. You can therefore expect a fund with 80% shares and 20% bonds to give you a higher return than a fund with 30% shares and 70% bonds.

Start investing in three easy steps!