The decrease in the Livret A interest rate, combined with persistently high perceived inflation among households, is redefining financial investment choices in 2024. We are seeing a net shift in fundraising towards higher-yielding but also more complex to evaluate assets.
Perception Bias of Inflation and Consequences on Asset Allocation
French households consistently overestimate the level of inflation, even during a decline. According to a Banque de France / CSA survey, this perception, which is disconnected from actual data, leads to an overweighting of perceived protective assets (real estate, gold) at the expense of allocations that perform better in the long term.
This bias has a measurable effect on portfolios: investors delay their exposure to equity markets, accumulate cash in assets with negative real yields, or turn to SCPI without analyzing the financial occupancy rate. We recommend basing allocation decisions on officially observed inflation, not on feelings.
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Renovated ISR Label: What the New Framework Changes for Your ETFs and Equity Funds
The ISR label was profoundly reformed in March 2024. The new framework introduces strict sector exclusions (coal, unconventional hydrocarbons) and strengthens ESG filtering across all labeled portfolios. Funds that do not meet these criteria will lose their eligibility on January 1, 2025.
In practice, the investment universe of labeled ISR ETFs has shrunk. Some indices replicated by popular ETFs no longer comply with the new exclusions, which may lead to a benchmark change without clear notice for the shareholder.
Before subscribing to an ISR-labeled fund, we recommend checking three points:
- The fund’s compliance date with the new framework, published by the ISR Label Committee
- The sector composition of the underlying index, particularly the residual exposure to fossil fuels
- The potential additional cost in management fees related to the enhanced ESG filtering, which can erode net returns
A fund that carried the ISR label before 2024 does not automatically retain it. Check the updated list of labeled funds published by the Label Committee before any allocation decisions.
Life Insurance in Unit-linked Accounts and Structured Products: Balancing the Yield-Risk Pair
Life insurance remains the central vehicle for wealth management in France. The euro fund offers capital protection, but its real yield hovers around zero once inflation is deducted. Unit-linked accounts expose investors to the risk of capital loss but allow access to equity markets, SCPI, and ETFs within a favorable tax framework.
Structured products deserve special attention in 2024. Massively distributed in life insurance, they offer attractive coupons but come with early redemption mechanisms and protection barriers that must be read carefully. The unfavorable scenario of a structured product can involve a partial or total loss of the invested capital.
We observe that many investors focus on the announced coupon without analyzing the underlying asset, the frequency of barrier observation, or the issuer’s solidity. A structured product linked to an equity index with a barrier below thirty percent of the initial price represents a significantly higher risk than a diversified ETF on the same index.
Artificial Intelligence and Investment Decision-Making: An Immature Usage
According to the AMF’s savings and investment barometer, French investors are already using AI before placing their money, but this usage remains a minority and raises significant distrust. Tools like chatbots or automated screeners provide surface-level analyses, rarely tailored to individual risk profiles.
The main danger lies in false confidence: a language model can produce a seemingly coherent allocation recommendation but without integrating the taxation of the PEA, contribution limits, or the user’s actual investment horizon. AI does not replace a structured wealth audit.
Its utility is currently limited to market monitoring and information sorting. For portfolio construction, managed services offered by online brokers or a wealth management advisor remain more reliable than a prompt.
Arbitration Between PEA, Securities Account, and PER: Tax Selection Criteria
The choice of tax envelope conditions the net performance of an investment more than the choice of the asset itself. Three criteria determine the appropriate envelope:
- The investment horizon: the PEA becomes tax-advantaged after five years of holding, the PER locks funds until retirement except in cases of early withdrawal
- The nature of the targeted assets: the PEA only accepts European stocks and certain eligible ETFs, while the securities account provides access to all global markets
- The marginal tax rate: the PER offers an entry deduction that is only of real interest to taxpayers subject to a high marginal rate
Opening a PER solely for the tax advantage without checking the quality of the assets offered by the manager is a common mistake. The net return after fees and taxes takes precedence over the gross tax advantage.
The recent negative collection of the Livret A, documented by the Caisse des Dépôts, confirms that savers are beginning to shift towards these longer-term envelopes. This reallocation only makes sense if the investor accepts higher volatility and already has a precautionary savings built up in liquid assets.