Faced with persistent inflation and an uncertain economic environment, you are surely wondering where to invest your money in 2025 to protect and grow it. How can you navigate between promises of high returns and the need to secure your capital? What are the most relevant investments for your projects, whether to prepare for retirement, finance a real estate purchase, or simply boost your savings?
This guide is designed to illuminate your path. We will explore together the different options available to you, from the safest solutions to the most innovative investments. The goal is not to give you a single answer but to provide you with the keys to build a strategy that suits you, in line with your objectives, your time horizon, and your appetite for risk.
Defining Your Objectives: The First Step for Successful Investing
Before even comparing returns, the first and most crucial step is to clearly define your personal objectives. A good investment is not only one that yields the most but one that is best suited to your life project. Do you want to build a down payment for a property purchase in 3 years? Prepare a supplementary income for your retirement in 20 years? Or simply make a sum of money work that you will not need in the short term? The answer to this question will determine your investment horizon. The longer this horizon, the more you can afford to include more dynamic—and thus potentially more volatile—assets in your portfolio.
This reflection must be accompanied by an honest assessment of your risk tolerance. Are you willing to see the value of your capital fluctuate in exchange for the potential for higher gains, or is preserving your initial investment your top priority? There is no right or wrong answer, only the one that will allow you to sleep peacefully.
Finally, never forget the basics: the emergency fund. Before any investment, make sure you have an emergency fund equivalent to 3 to 6 months of your current expenses. This money, which should remain liquid and risk-free, will cover you in case of unforeseen events (job loss, urgent repairs...) without forcing you to liquidate your long-term investments at the wrong time.
Secure Investments to Protect Your Capital in 2025
For the emergency fund and the safest portion of your assets, the goal is clear: guarantee your capital while seeking to limit erosion due to inflation. Several solutions meet this need.
Emergency Savings: Regulated Savings Accounts
Regulated savings accounts are the gateway to saving. Their rates are set by public authorities, and their interest is fully exempt from taxes and social contributions. They are perfect for your emergency fund thanks to their immediate liquidity.
| Investment | Return (Indicative 2025) | Limit | Taxation | Ideal for |
|---|
| Livret A | ~2.4% | €22,950 | Exempt | Emergency fund |
| LDDS | ~2.4% | €12,000 | Exempt | Supplement to Livret A |
| LEP (income conditions apply) | ~3.5% | €10,000 | Exempt | The best savings account if eligible |
| Super Savings Accounts | 3-4% (often promotional) | Unlimited | Taxed (Flat tax 30%) | The surplus beyond regulated accounts |
Once the ceilings of tax-free regulated accounts are reached, "super savings accounts" offered by banks can take over, but be careful: their attractive rates are often temporary and their gains are taxed.
Euro Funds in Life Insurance: Safety with a Boost
The euro fund is the safety cornerstone of the life insurance contract. Your capital is guaranteed by the insurer, making it a very reassuring investment. After several years of decline, their returns have started to rise again, often exceeding inflation net of taxes. In 2025, average performances around 3% can be anticipated, with much higher peaks for the best contracts.
Some insurers offer "boosted" or "dynamic" euro funds that aim for higher returns by including a small portion of more dynamic assets (real estate, equities) while maintaining capital guarantees. For example, the Netissima euro fund targets a yield of 4.60% for 2025 and 2026 (under conditions). This is an excellent option for the part of your savings that you wish to secure in the medium term while seeking a return higher than savings accounts.
Note
Access to these high-performing euro funds is often conditional on investing a portion of your payment (generally between 30% and 50%) in unit-linked assets (UC), which carry a risk of capital loss. This is a way for the insurer to share the risk while offering you better potential.
Boosting Your Wealth: The Best Options for the Long Term
To aim for more significant returns and build your wealth over the long term, you must accept a degree of risk and turn to more dynamic investments.
Life Insurance: The Saver’s Swiss Army Knife
We have discussed the euro funds, but the true strength of life insurance lies in its versatility. It is a tax wrapper that allows you to combine the security of the euro fund with the performance potential of units in account (UC). These UCs give you access to a multitude of markets: stocks, bonds, real estate (via SCPI), etc. You can thus build a tailored allocation perfectly suited to your profile.
Life insurance shines through its flexibility. You can make switches between funds to adapt your strategy to market changes without triggering taxation. Above all, it benefits from a very favorable tax framework:
- After 8 years of holding, you benefit from an annual allowance on gains of €4,600 (€9,200 for a couple).
- Beyond this allowance, the tax rate on gains is reduced to 7.5% (compared to 12.8% before 8 years), excluding social contributions.
- In case of inheritance, it allows you to transfer up to €152,500 per beneficiary free of tax.
It is the ideal wealth-building tool for long-term projects.
Equity Savings Plan (PEA): The Must-Have for Stock Market Investing
If you want to invest specifically in European stock markets, the PEA is the preferred wrapper. Its main advantage is its taxation: after 5 years of holding, all gains (capital gains and dividends) are fully exempt from income tax. Only social contributions (17.2%) remain payable. This is a considerable tax advantage, making it the most effective vehicle for a stock portfolio in the long run.
However, the PEA carries a risk of capital loss. It is therefore reserved for the dynamic part of your wealth and for a long investment horizon (more than 5 years, ideally 8-10 years) to smooth out market volatility. The contribution ceiling is €150,000.
Expert Tip
Do not invest in a single stock within your PEA. Diversification is key. Prefer investment funds or ETFs (trackers) that replicate a broad index (such as the CAC 40 or Euro Stoxx 600). This way, you reduce the company-specific risk while capturing overall market performance.
Real Estate Investment: From Physical Property to Paper Stone
Real estate remains a safe haven in the minds of many, a tangible investment that generates regular income. In 2025, several options are available to you.
- Direct rental investment: Buying an apartment to rent offers full control over your property and the possibility of using credit leverage. However, it requires a significant initial capital (down payment, notary fees) and a considerable time investment for management (finding tenants, maintenance, unpaid rent, etc.). The risk is concentrated on a single property.
- SCPI (Real Estate Investment Companies): “Paper stone” is a very accessible alternative. By purchasing SCPI shares, you become co-owner of a large portfolio of professional real estate (offices, shops, warehouses...) managed by experts. You receive quarterly rents without worrying about management. It is an ideal solution to diversify into real estate from €1,000, with average returns around 4.7% in 2024. The main downside lies in high entry fees (8-12%), which require a long investment horizon (over 8 years) to amortize.
- Real estate crowdfunding: This solution allows you to finance real estate development projects over a short period (12-24 months) in exchange for very high announced returns (8-10%). The risk is commensurate with the return: construction delays, project failure, capital loss... It is a diversification investment to consider only for a small part of your wealth and if you are fully aware of the risks.
Alternative and Innovative Investments: Dare to Perform in 2025
For investors looking to go off the beaten path and capture new sources of performance, 2025 offers exciting opportunities, often uncorrelated with traditional markets.
Private Equity: Invest in the Real, Unlisted Economy
Private equity involves investing in companies not listed on the stock exchange. Historically reserved for institutional investors, it is becoming increasingly accessible to individuals through specialized funds (FCPR, FPCI). It offers very high long-term performance potential (often exceeding 10% per year) by supporting the growth of innovative companies. In return, the risk of capital loss is real, and your money is locked in for a long period (typically 7 to 10 years).
Emission Allowances: A New Asset to Combine Finance and Climate
What if your investment could have a double impact, both for your portfolio and for the planet? This is the promise of a new asset class: emission allowances or carbon quotas. The principle is simple: in Europe, the most polluting industries must buy “pollution rights” (quotas) to offset their CO2 emissions. The number of these quotas is deliberately reduced each year by authorities, causing their price to structurally trend upward.
Until recently, this complex market was reserved for experts. Our mission at Homaio is to make this investment accessible to all. By investing in emission allowances or carbon quotas, you participate in a powerful decarbonization mechanism: each quota you purchase is a quota that will not be used by an industrial polluter. You thus directly contribute to the climate trajectory while positioning yourself on a financial asset whose performance is uncorrelated with traditional financial markets. It is a concrete way to make your money a lever for change.
Socially Responsible Investing (SRI)
Beyond carbon quotas, a fundamental trend is establishing itself: Socially Responsible Investing (SRI). This involves integrating Environmental, Social, and Governance (ESG) criteria into your investment choices. You can thus decide to support companies that fight climate change, promote diversity, or have exemplary governance practices. Numerous SRI-labeled, Greenfin, or Finansol funds are available within life insurance and PEAs, allowing you to align your personal convictions with your wealth strategy without necessarily sacrificing performance.
Warning
Taxation is a key element of the net performance of your investment. The default rule for most capital income (dividends, interest, capital gains) is the Flat Tax (PFU) at 30% (12.8% income tax + 17.2% social contributions). Wrappers like the PEA and life insurance offer far more advantageous special tax regimes that you must absolutely seek to exploit.
There is no universal “best investment,” but a multitude of solutions to build the portfolio that suits you. The year 2025 invites a balanced approach: build a solid base with secure investments such as savings accounts and euro funds, then seek performance over the long term through diversification offered by life insurance, PEA, and paper real estate. For the most daring, innovative assets such as carbon quotas offer a unique opportunity to combine financial return and positive impact. The key to success will lie in your ability to define your objectives, understand the risks of each solution well, and, above all, take action.
FAQ: Your Questions About the Best Investments in 2025
Which investment yields the most in 2025?
There is no single answer, as returns are always linked to risk. Historically, stocks (via a PEA or UCs in life insurance) offer the highest return potential over the long term but with significant volatility. Alternative investments such as real estate crowdfunding or private equity can show double-digit returns but with a much higher risk of capital loss. Safer investments like SCPIs or boosted euro funds offer an excellent risk/return compromise, with expected performances between 4% and 7%.
Where can I invest my money without risk?
For an investment without risk of capital loss, the main options are regulated savings accounts (Livret A, LDDS, LEP) and euro funds in life insurance contracts. Savings accounts offer immediate liquidity and zero taxation, which is perfect for the emergency fund. Euro funds guarantee your capital and propose a higher return, making them an ideal solution to secure part of your wealth in the medium term.
PEA or life insurance: which one to choose?
They are not competitors but complementary tools. The PEA is unbeatable tax-wise for investing specifically in European stocks over a horizon of more than 5 years. Life insurance is much more versatile: it allows you to invest worldwide, across all asset classes (stocks, bonds, real estate...), mixing security (euro funds) and performance (UCs), and offers unique inheritance advantages. Ideally, an informed investor should hold both.
How can I invest with a small budget, like €1,000?
With €1,000, you can already start investing efficiently. The best option is often to open an online life insurance contract (with no entry fees), giving you access to a wide range of funds. You can also buy SCPI shares, some of which are accessible from just a few hundred euros. It is also with this accessibility in mind that we designed our carbon quotas offer, to allow as many people as possible to participate in impact finance. The important thing is to start early, even with small amounts, to benefit from the power of compound interest.
