A colleague places all of his savings in a euro fund at 2.5% net. After inflation, his capital decreases each year. This situation is still often encountered in 2024, illustrating a broader problem: an investment that appears stable can generate a real loss if its return does not cover the rise in prices.
Private equity in France: performance exceeding listed stocks over ten years
Listed stocks and real estate capture attention whenever savings are discussed. Private equity, on the other hand, is gradually making its way into wealth allocations without making much noise.
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The data published by France Invest and EY places the net IRR of French private equity at 12.4% per year over ten years as of December 31, 2024. Over the same period, the CAC 40 with reinvested dividends reaches 8.9%. The gap, measured over a decade, far exceeds the margin of error.
On the access side, the situation has changed. It is now possible to include private equity in unit-linked life insurance, in a PER, or through semi-liquid funds. Twenty-six billion euros were invested in private equity in France in 2024, an increase of 16% compared to 2023. To identify vehicles suited to one’s profile and track these developments, the Full Invest website regularly publishes analyses on these asset classes.
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The trade-off is clear: reduced liquidity, higher fees than on an ETF, and an investment horizon that often exceeds five years. One should not put money needed in the short term into this.
SCPI and listed real estate: choosing between regular income and liquidity
An investor who buys an apartment to rent manages tenants, repairs, and unpaid rents. SCPI eliminates this operational burden. One buys shares, receives quarterly income, and the management company takes care of the rest.
Returns depend on the type (offices, healthcare, retail, logistics) and the management company. Recently launched SCPIs aim for higher returns than historical vehicles, in exchange for an assumed exposure to diversified European markets.
On the ground, several points deserve attention:
- SCPI invested in healthcare real estate or European logistics often show distribution rates higher than those of Île-de-France office SCPIs, which are penalized by the rise of telecommuting.
- The secondary market for SCPI shares tightened in 2024, with extended resale times for some older vehicles. Checking liquidity before subscribing is not optional.
- Entry fees cut into performance in the first years and should be amortized over a long horizon.
Listed real estate companies provide an alternative for those seeking more flexibility. They offer the liquidity of a stock, but with volatility comparable to that of the stock market. This does not suit all profiles.
Climate investments: a financing deficit that creates space
The 2026 report from I4CE on climate investments in Europe documents a structural gap. The continent invests less than what is necessary to meet its decarbonization goals. This deficit between real needs and available financing opens margins for investors positioned on the energy transition.
In practice, flows are directed towards renewable energies, energy efficiency in buildings, and network infrastructure. Thematic climate ETFs allow access without stock-picking, but their composition varies greatly from one issuer to another. An ETF labeled “climate” may contain a majority of American technology stocks with a very indirect link to the transition.
Before subscribing, one should check the methodology of the underlying index: selection criteria, required percentage of “green” revenue, sector exclusions. Without this work, one buys a label, not a coherent allocation.
Green bonds and dated funds
With rates remaining at higher levels than three years ago, dated bond funds (a basket of bonds with a fixed maturity) offer a known yield in advance if held to maturity. Unless there is a default by an issuer, one knows what to expect.
Green bonds combine this advantage with a focus on transition projects. The credit risk remains the same as that of a conventional bond from the same issuer. The difference lies in the monitoring: the allocation of funds is verified by external auditors.
Building a 2024 portfolio: concrete trade-offs
Diversifying is a series of practical decisions related to one’s horizon, tolerance for temporary losses, and liquidity needs.
The landscape has changed since 2019. Bonds are yielding something again, private equity is accessible without a six-figure ticket, and “green” investments have moved beyond the niche stage.
- Set a clear horizon for each pocket: less than two years (euro funds, savings accounts), two to five years (bonds, dated funds), more than five years (stocks, SCPI, private equity).
- Do not exceed 15 to 20% of the portfolio in illiquid assets, unless one has very long visibility on cash needs.
- Rebalance at least once a year: selling what has outperformed to buy what has dropped effectively applies the principle of “buy low, sell high” mechanically.
The most common trap remains inertia. A portfolio frozen for five years rests on the assumption that market conditions do not change. They always do. A quarterly review of allocations is enough to correct deviations before they weigh on overall performance.