With an increasingly rich but also increasingly complex offer, knowing which investment to choose is sometimes complicated. Thus, we are all in constant search of the ideal investment which will be the most profitable without taking too much risk. But if there are some investments that are more interesting than others, it should be borne in mind that the interest of an investment also depends on the situation and the objectives of each individual and that there is therefore no one only placement that is better than all the others.
To help you, we present the 6 investments that we believe to be the most profitable in 2020.
Rental real estate
Stone is one of your favorite investments and you are quite right! Real estate offers one of the best risk / reward ratios. It is an asset that tends to appreciate over time and which resists quite well in times of financial instability. So even though it was hit by the 2008 crisis, real estate held up better than most other investments. Also, with credit rates still relatively low, 2018 seems like the right time to make a rental investment.
A rental investment can relate to different types of property: apartments, car parks, studios, walls of shops … Thus, for better profitability, prefer investing in a car park or in walls of shops in the city center by their mind mapping app .
However, as with any investment, there are risks and it is therefore important to respect the elementary rules for a successful rental investment . Do not forget either that it is possible to invest in real estate abroad with sometimes more interesting returns than in France.
Life insurance is an investment that offers many advantages: building up long-term capital, preparing for the transmission of one’s assets or investing in a variety of media. It is therefore an investment that can be adapted to the needs and projects of each individual. Life insurance allows you to distribute your capital between the fund in euros with guaranteed capital, the interests of which are acquired no matter what, and the units of account, which may contain shares, bonds, SCPIs, etc.
However, it should be kept in mind that despite the possibility of withdrawal at any time, the taxation becomes really advantageous after 8 years. It is therefore an interesting investment from a long-term perspective.
Crowd funding is the newcomer to investing. Appeared only a few years ago, it involves associating, generally via a web platform, several investors interested in the same investment so that they invest jointly. It thus gives individuals access to investments to which they had little or no access before.
With the multiplication of platforms in recent years, the offer is now quite varied. Thus, for example, it is possible to invest in startups in which you believe, to lend money to SMEs ( crowdlending ). Some platforms like Immovesting have even specialized in real estate crowdfunding and offer investments offering returns of up to 12% per year.
Even though the stock market has been rising steadily since 2012 and stocks can seem “expensive”, keep in mind that stocks are among the most profitable investments over the long term. According to an IEIF study, stocks have offered an average annual rate of return of 12.2% over the past 30 years.
Big advantage: the equity market is a very liquid market, which allows you to have your earnings when you want. In addition, you can benefit from attractive taxation if you buy shares through a PEA or a PEA-PME.
Real estate via SCPI
SCPIs are civil real estate investment companies, they manage rental property assets made up of offices, shops or homes.
This investment in “the paper stone” is an excellent way to invest in real estate without the traditional constraints of management : you delegate management to professionals. With returns of around 4% to 5% per year on average, it is a low volatility investment that offers a good compromise between profitability, risk and personal investment.
Be careful, however, to be selective in the choice of SCPI: not all SCPIs are created equal. Prefer those managed by leading management companies and which have sufficient history.
To find out more about SCPI, we explain everything here.
Gold has a reputation for protecting against crises to which other assets are exposed (inflation, economic recession, etc.) and has thus become the “security” investment par excellence.
However, it should be borne in mind that this asset class, for example, experienced a decade of stagnation until 2005 or even between 2012 and 2015, a period during which gold lost more than 30% of its value. value !