People often ask me about various investment options in France and it is one of the most common FAQs. So, I will be sharing an annual update of my portfolio every January. This can serve as a good example for people, who are beginning their investment journey.
Here is my investment portfolio on January 2023. The next update written in October 2023 is available here My Personal Investment Portfolio Update No.2 – Oct 2023
Target Asset Allocation:
75% in Equity + 25% in Debt/Cash, based on my current risk profile.
A. Debt & Cash: 20%
- NRE FD 60% (Reinvested)
- NRE account 15%
- French bank 25%
Note: Contains the emergency funds for 5-6 months expenses too, even though living in France takes care of a few important emergencies.
B. Equity: 80%
1. PEA – 40% #Boursedirect
- Amundi MSCI World Dev ETF 60%
- Amundi Nasdaq100 ETF 25%
- Amundi EM Index ETF 10%
- French/EU dividend stocks 5%
Note:
- Manually invested almost every month. Tax advantage after 5 years of opening the account.
- No capital gains tax applicable, except a social charge of 17.2%. Investment should be maintained for a minimum of 5 years.
- My first choice for anyone starting to invest in France.
- To open an account: Boursedirect (Referral code: 2020751090).
2. PERin– 15% #Boursorama MATLA
- Target date mandate (currently 100% equity ETFs with 54% of funds invested in Europe).
- Will automatically rebalance to 100% debt towards the end.
- Automated monthly.
- Reduces Tax but blocked until retirement.
- From you Bank account directly. For example, I have mine with Boursorama
3. PERCO – 10%
It is from my prvious employer. So, i have requested for a transfer to PERin.
4. CTO – 0% #InteractiveBrokers
- I use it only for american stocks.
- Manual but can be automated too.
- To generate monthly cashflow via dividends, in the future.
- To open an account: https://ibkr.com/referral/prasanth742
- I have used other brokers like DEGIRO, Etoro, Trading212 & TradeRepublic.
5. Assurance Vie – 3% #Boursorama
- Lyxor SP500 ETF – 85%
- Euro Funds- 15%
Note:
- Automated for every 3 months.
- Tax advantage after 8 years of account opening and the investment is blocked for the period chosen.
- It’s not the same as the Life Insurance in India.
- From your bank account directly or via Linxea, etc.
6. Indian Mutual Funds Direct Growth – 7% #Kuvera #MFCentral
- UTI Nifty 50 Index – 60% (very long term)
- ata Tech Fund – 38% (new & only for med term profit booking)
- HDFC Financial – 2% (new & only for med term profit booking)
Note:
- Automated and Manual investments.
- Very small contribution now.
- I am continuing it just to have this option and other benefits.
- To open an account, click this link Kuvera
Portfolio CAGR: Not for public.
Assumptions:
- I do Income Tax Declaration in India and France
- EUR/INR Rate used: 85 rupees and done via Wise (previously known as Transferwise)
- Annual Inflation Growth at 7% and expected CAGR of 12%.
- Blocked funds can be withdrawn earlier, based on some specific reasons.I have only mentioned the %s in capital invested.
- Haven’t included the Profit/Loss info.
- Took me 3 years to understand various things, countless discussions with a few ppl. Includes a lot of trial/error over these years to finally arrive at this portfolio.
- I don’t know where I will be after 3-5 years.
- So, no point in thinking too much about it.
- Wasted some precious time thinking about these things.
- Knowing French helped a lot, especially in understanding the French tax calculations & financial documents.
- Couples should figure out their risk capacity together. So, I might have to consider it when I get married & patiently explain all these things to my future partner. This is very important and will have a huge impact on the financial situation. I have seen so many couples struggling on this aspect.
Thanks for reading until here. Feel free to add your suggestions, questions, etc. in the comments.
Disclaimer:
- Any finance-related information shared is not professional legal, tax, or investment advice.
- The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code.
- Investment carries risks of loss and past performance does not guarantee future performance.
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Thanks for the detailed explanation and really useful content to plan for savings.
With pleasure and thanks a lot for your feedback
Excellent article! This is a great investment portfolio.