Why ‘dead cert’ fonds en euros no longer a good bet

When it comes to where to put your hard-earned savings, the options look “challenging”.

They say “cash is king” but the current central bank interest rate stands at 0.0%, so returns are hardly royal. Given inflation is now around 1.85%, significant long-term losses are assured, losing around one-fifth of your buying power in the next 10 years.

You could always venture into the stock market and pick a few “dead cert” winners (to me, that is gambling – not financial planning).

There is a middle ground, to also buy some bonds, though long-term bonds hardly look attractive, with more government debt attracting negative yields (you pay them).

In France, however, there is another option, known as the fonds en euros, literally funds in euros. Unsurprisingly, this started as the fonds en francs and its ...

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