While inflation is breaking all records in the euro zone, the fintech Mon Petit Placement is launching an anti-inflation portfolio on Tuesday with 27% guaranteed returns per year. A first in France.
Don’t lose money. Failing to win, it has become the new leitmotif of French savers. And the task is not easy. In October inflation reached 10.7% over 1 year in the euro zone and 6.2% in France, according to INSEE. An amount that few savings products manage to offset.
Despite its new rate 2%the Livret A, for example, shows a yield rel negative after taking inflation into account. The same goes for the euro life insurance funds. Result? The 30.4million of French households have seen their savings evaporate 2400 euros in 2022, according to Mon Petit Placement estimates.
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2 7% yield
To help French households protect their wealth, this fintech, created two years ago and which today has more than 20000 customershas just launched an anti-inflation portfolio whose returns are indexed to the rise in consumption price (excluding tobacco) in the euro zone.
This portfolio is neither a passbook, nor attached to the financial markets, nor real estate, indicates Mon Petit Placement. It’s a structured product designed in partnership with Société Générale and housed in a life insurance contract, explains Thomas Perret, founder of Mon Petit Placement.
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In concrete terms, this portfolio replicates the performance of the Eurostat Euro zone HICP index, with a capped return 7%but guaranteed 2%. Each year, you therefore receive 2 to 7% interest, depending on the annual performance of the index. In October, the latter reached 10.7% over 1 year. Or its highest level in history.
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Guaranteed capital
Another key feature of this new investment: your capital is guaranteed. In other words, you are sure to find your initial bet, with the addition 2% minimum annual return. Only condition: the funds must be blocked during at least 5 years. If you withdraw your money before this chance, there is a risk of capital loss.
To understand: if you invest 10000 euros on the anti-inflation portfolio of Mon Petit Placement and that inflation in the euro zone reaches on average 5% per year over the next 5 years, you will recover your starting 10,000 euros + 500 euros yield per year, i.e. 2500 euros over 5 years.
In the unlikely event that inflation in the euro area is on average lower 2% over the next 5 years, you will still keep your 10000 euros starting price + the minimum return of 2%, i.e. 200 euros per year, that is 1000 euros over 5 years.
And after? Once the 5 years have been reached, your starting capital and your earnings will be automatically paid into a standby fund, always log on your life insurance contract. You will then have two options: invest again or withdraw the sum, in which case you will receive your funds in your bank account under 15 30 days.
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Accessible from 1000 euros
On the fresh side, Mon Petit Placement takes 2.5% entrance fees. However, this amount will be returned to you once the 5-year milestone has been reached. To this are added 0.5% management fees. The minimum investment to access this savings product is 1000 euros. And you can’t place more than 50000 euros.
This investment, unique in France, offers security and performance to savers anxious to see their savings eroded by inflation and reluctant to pass the cape of the financial markets, trumpeted Mon Petit Placement, which hopes to collect between 5 and 30 million euros outstanding on this new product.
You can subscribe to the Mon Petit Placement anti-inflation portfolio from November 15, 2022 and until January 15, 2023. Beyond that, the placement will close its doors. If successful, however, the operation could be repeated in the future.
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