How to choose its funds

Whether you purchased a PEA or contract of life insurance, your policy offers several funds in which to invest your money. You must choose these funds for optimal performance. Several strategies are possible, which depend on the objectives that you set.

One strategy that produces good results, is to minimize your expenses to maximize your winnings. We are accustomed to thinking that by paying more, we have more for our money. This is not true for mutual funds. Every euro we spend on miscellaneous and varied is one euro less won with our investments. We have seen that one euro can be transformed by the magic of compound interest and in a very large sum . It is therefore essential to keep your investment costs as low as possible.


Then when you know that 80% of the funds perform no better than their benchmark index (the CAC40 example is a benchmark), it includes the interest to focus on index funds, with their very low costs. Index funds generate better results than most actively managed funds, and as they simply replicate better their benchmarks, there is not a full team of managers to manage the bottom.

Also be aware that index funds are easy to manage. They will therefore take a minimum of your time. You will still need to think about having a diversified portfolio to reduce risk, you rebalancerez at least once a year. A stock index can have bad results. If your portfolio following several clues, through several index funds, the risk is thereby reduced even.

We will see further strategies of fund choices, but if you do you are unfamiliar and want to spend a minimum of time, choose index funds will prove in the long term strategy for paying your EAP or your insurance Life.

Related posts:

1. Who else wants to know how to choose the best funds? It’s done! You have chosen a PEA or an insurance-linked...
2. Why index funds as you relate? You know that a good strategy to choose its funds...
3. Differentiate bottom and the bottom unit of account in euros Do you know the difference between a bottom unit of...
4. A simple method in 10 criteria to choose your life insurance policy How do you compare offers and choose the best life...
5. A positive quarter for pension The level of solvency of the pension plan means improved...

back to Consumer Credit.