Can we complain about prices that are less expensive when one wants to invest ? After the downturn of 2018, know spot good business.

Timid, disappointed, distrustful, the French usually have some investments in shares. The securities which comprise investments in shares, bonds and investment funds) represent less than 15 % of the heritage of the 25 – 64 years of age, and just over 21 % of over 65 years, according to Insee. Yet, many have a form of attraction-repulsion to the Exchange, ready to attempt the adventure, when she is breaking records or to swear that they would not be there will resume when it collapses.

due to lack of knowledge and experience, investors rely more on the actions after years of increase that in the aftermath of a crash. “With 39.5 billion euros, the year 2018 is recorded as the best year in history in terms of volumes of subscription for units of account (UC), announced the French Federation of insurance last month. But the fall of 18 % for the CAC 40 index, between its peak of 21 may and the trough of December 24, 2018, was able to make become disillusioned some.

“You have to be careful not to invest in UC when the markets are at their highest,” explained Cyrille Chartier-Kastler, president of Facts & Figures, commenting on this trend last spring. “The rate of units of account in the collection varies first according to the situation of financial markets”, added the expert.

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beginning of the year was very positive

investors tend to place a higher proportion of their payments in life insurance in investment funds and the CPU when the Stock is at the highest, and a smaller proportion after the crash, when prices are at levels more interesting. The proportion of investments in investment funds and in the CPU has reached 43% of payments in life insurance in 2000, 25 % in 2007 and 28 % in 2018, when the CAC40 index was, respectively, peaks at 6950 points, 6137 points and 5657 points. But this part of risk investments had fallen to 16 % of sales in 2003, 13% in 2009 and 12 % in 2012, shortly after a collapse of course.

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Those who wanted to take their legs to their necks at the height of the drop, panicked by the many news stories on the stock market crisis, are less tempted to sell after the rebound from the beginning of 2019. “The beginning of the year is very positive, and marks a dramatic fracture with the panic of last December. As often, the scenario is black, if consensus has not occurred, and investors are too cautious, are taken backward,” observes Jean-Marie Mercadal, chief investment officer of OFI AM.

It is true that the force of the rebound has surprised that the plunge in the previous between Christmas eve and February 7, the CAC 40 index has returned 10 %! Then, to redeem it when the storm seems to have passed? Or sell before it rebaisse? The answer depends on the situation of each individual, and its psychological resistance to the stress of the markets.

Invest regularly

In principle, the proportion of shares that can be put in its heritage depends on his investment horizon. It can hold 15 to 30 % of the shares if you have at least three or four years in front of self, up to 50 % of shares if it has at least five or six years, and up to 80 % of shares or more if one has their whole life ahead of itself, these doses of actions and durations of investment recommended are those of the fund profiles, cautious, balanced and aggressive.

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In practice, the resistance risk depends on a lot of the time we have invested, as potential gains and losses are not the same if the CAC 40 index was below 4000 points, or close to 6000. “Those who have had the chance to invest at the right time more often urge to return there than those who have been tormented from the beginning after having bought at a high level,” observes Arnaud Doria, wealth management advisors in Neuilly.

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Invest on a regular basis is a good way to reduce the risk of purchase in the highest, and benefit levels are attractive in the event of a downturn. Because of the increases and decreases, there always will be. On average, the CAC40 index down 1 year out of 3, but not time-predictable (see the infographic). If we place each month the same amount in equity funds, we buy mechanically fewer units when their level is high. And when prices fall, you acquire more units of the same investment in the shares for an identical amount.

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Euronext, Deontofi.com

Make investments every month allows them to purchase fewer shares when they are more expensive, and more when they go down, which reduces cost and mitigates the risk of loss. Most banks and online brokers offer the services of regular payments into Mutual funds or life insurance, to invest in shares from a few tens of euros per month with great flexibility and without any commitment or additional costs. With the best life insurance policies on the Internet, these services of the scheduled payments can also receive a bonus of return on the fund in euros without risk, as soon as it diversifies its installments, with 30% to 50% of units of account in shares.

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All markets and sectors do not fall and do not rise at the same time. Over one year, funds specializing in small companies in france have plunged by 19 %, and the fund for large values the French have lost on average 8 %, while u.s. equity funds earned 10 % and those specialized in the pharmaceutical and health adjugeaient 16 % increase (as at 10 February 2019, according to the database Quantalys). Between these extremes, the fund “world equities” the more diversified is appreciated 3.4%.

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