Also known as venture capital mutual funds, unlisted life insurance is a great investment opportunity. An interesting and complementary alternative to SICAVs and other mutual funds: mutual funds.
Securities not listed in life insurance, private equity
In unit-linked life insurance contracts, savers have been able to allocate part of their investment in recent years to unlisted securities, ie shares of companies not listed on the stock exchange. An opportunity made possible by the 2015 Macron law, which allows many companies to benefit from funding to support their growth. The FCPR for – Mutual Funds at Risk – is an investment vehicle that offers the opportunity to purchase these securities for inclusion in its life insurance policy. It is more often shares, we speak in this case of private equity or private equity. Private equity can do a double blow: finance companies of all sizes and generate an interesting level of return. If for the moment the offer of FCPR remains more limited than that of mutual funds, the trend is increasing and more and more insurers are offering this support. Like SICAVs, unlisted securities play on two fronts: a potentially high return, which is also accompanied by risk-taking. This is why the advice of your insurer is essential. To know: the repurchase of contracts is made in securities or in cash, and therefore not only in "cash".
The advantages of investing in unlisted securities
The advantages of investing in unlisted securities The investment in unlisted securities is advantageous on several levels. The FCPR are accessible to as many people as possible, the minimum subscription is only € 1,000 depending on the offers. In addition, unlisted securities are more numerous than listed securities and in many cases can give access to mature and consolidated companies with solid financial health, which generates some investment security. The performance level is also interesting. It is also one of its greatest resources. The most recent figures show this clearly. At the end of 2017, this asset class generated an average annual return of 10.80% in 15 years compared to 7.10% for CAC40 securities. Investors can expect both a high return and a certain security of their capital, the securities of such companies not subject to fluctuations in the financial markets. Especially because the investment on these media cannot exceed 10% of the global budget. A good way to diversify your investments without risking too much. Another advantage: operating expenses are less important than those of the CPF. However, a specificity must be taken into account: unlike SICAVs, for example, the activities of the FCPR are subject to a blocking period of several years, from six to ten years depending on the contract. The introduction of unlisted securities in the life insurance contract is a great way to bring down capital and build on strong profitability.