Investments: a new indicator to know how much they really bring

Are the investments made by French households yielding much? What is their actual salary? Depositors often make changes investment vehiclesto gain profitability ? These are the questions raised by the Observatory of European Savings (OEE).

In order to respond to this with transparency, the association is in the colors of the 27 EU Member States ( Bank of France is one of them) has compiled a completely new quarterly index. It aims to measure the national return on French financial deposits.

Financial efficiency index: which calculation method?

To accurately calculate the overall performance of French investments, OEE takes into account:

• of award monthly or yearly different asset classes (Figures provided by France Assureurs and Banque de France);
• changes in the share of each investment product in the total financial wealth of French households (data provided by the Banque de France);

The purpose of this index is very simple: for example, to understand how much the 1000 euros you invested in one or more media 10 years ago really brought you. The indicator records the evolution of the portfolios and their movement with an annual update.

“The index will initially be calculated quarterly and published on the OEE website. All index data and information will be freely available. It will be calculated by IEM Finance, an independent research firm specializing in the design, management and calculation of stock market indices..

European Savings Observatory (OEE)

France: annual return 2%

According to the first simulations carried out by OEE over the last 10 years, the annual performance of French savings will currently be 2%. evolution from the index 2.14% p.a.. Investors’ wealth increased on average 3.95% p.a..

The first index, which can look scary compared to other statistical indicators of financial communication. For example,MFA (Financial Markets Authority) estimates annual returns around 5% to 7% for shares invested for 15 to 20 years.

Nevertheless, the French are very little fond of financial risks. According to OEE, Less than 10% listed shares constituted their total assets at the end of June 2022 435 billion euros out of a total of 4,500 billion euros invested.

A marked preference for financial prudence

Despite the growing general interest in the stock market, the French continue to be cautious about their financial investments. 40% stored in a liquid medium regulated manual (Livret A, LDDS, etc.) or a Bank account, 40% above euro funds (under PER or life insurance contract) and 20% is invested units of accountshares etc obligations without equity guarantee.

So, for 10 years, the French remained very inert and did not change the structure of their portfolios according to trends such as inflation. And this is even if the latter has been shown to be low over the past decade. A postulate that tends to reveal that The investment options of the French do not protect their savings from inflation.

summary

• OEE has launched a new economic index to measure the performance of French investments.
• Looking back over the past 10 years, the yield is currently 2% per year, according to the Observatory.
• The French remain committed to fiscal prudence and are reluctant to invest in profitable media.