The introduction since 2020 of a tax reduction rate increased from 18% to 25% for IR-SMEs has not really boosted subscriptions to FCPIs (Fonds Communs de Placement dans l’Innovation) and FIP (Proximity Investment Funds) which are the two categories of funds eligible for this tax benefit.
A study by the France Invest association and the AFG (French Financial Management Association) shows that the SCPIs, instruments dedicated to the financing of innovative companies and the FIPs, oriented towards the financing of regional SMEs, collected a total of 378 million euros in 2021, their highest level since 2018. This is better than in 2020 (330 million euros) but it does not significantly exceed the levels of 2018 (355 ME) or 2019 (318 ME) while household savings have been boosted by the health crisis.
53,000 subscribers in 2021
The average amount of subscriptions increased from €6,130 in 2020 to €7,120 in 2021 and this study counts 53,000 subscribers in 2021 compared to 54,000 in 2020. Savers invest mainly in SCPIs, which represented around 70% of inflows during the last two years. Last year, 15 FCPIs and 11 FIPs were available from 21 management companies. However, it has only been 3 years since the FCPI offer exceeded that of FIP: it was the opposite until 2018.
Of these 26 funds that raised capital in 2021, 7 obtained the “Relance” label, which allows savers to identify collective investment undertakings (UCIs) providing a response to the financing needs of French companies, listed or not, and thus mobilizing savings for recovery.
Extension of the increased rate this year
The tax reduction rate increased to 25% must still be maintained for subscriptions made in 2022. As a reminder, it is next April when declaring income that savers must indicate the amount of their subscription (made in 2021) to benefit from the tax credit which is reimbursed in July.