Differentiate bottom and the bottom unit of account in euros

Do you know the difference between a bottom unit of account and a background in euros? It’s a question I am sometimes asked by mail, as a contract of life insurance multi-media allows you to invest in both types of substance. It is essential to know their differences to make your choice knowingly. 80% of the money invested in life insurance by the French are on the funds in euros when they do not yield much. Here are some things to help you better understand the differences between these types of background.

Security funds in euros. Basically, with a background in euros, your money is sure to bring something. The market players are fighting to offer the best rate possible. Currently you can expect between 4 and 4.5% yield. It’s not a lot and it will not allow you to get rich. A background in euros you can have your money invested safely at a rate higher than inflation. Your annual earnings are paid to you in the form of euros and therefore taxed each year.


The performance of unit-linked funds. With a background in accounting units, you buy units in a fund. This fund is managed by a specialist who mainly buys the shares. A background in accounting unit can earn you much more than a background in euros, the stock market has soared in recent years though, but you can also lose money. As long as you have not sold your shares at the back, your wins and losses are only potential. As you hold that share, you are not taxed every year, but only on gains realized on the sale of your shares from the bottom.

Rather, funds are to consider your long-term investments, having established your precautionary savings and in addition to your savings for your short-term projects. Depending on your risk tolerance, you choose how much of your investment you put on euro fund and the fund unit of account. Perhaps you know of other differences between these two types of funds?

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