Euro fund returns 2026: calculation, limits and solutions

In an uncertain economic outlook, how can you make sure your savings not only preserve their value, but also grow? The euro fund, a cornerstone of French-style Assurance vie, has long been the obvious answer thanks to its capital guarantee. But is it still living up to its promises of return and security?

After years of lean times, euro fund rates have seen a strong rebound, reigniting savers’ interest.

However, behind the headline figures lies a more complex reality—fees, taxation, and fierce competition from other investments. It has become crucial to break down what actually makes up the real performance of this option and to question its structural limits.

Understanding the return of a euro fund: beyond the headline figure

The euro fund is the secure compartment of Assurance vie contracts and Plans d'Épargne Retraite (PER).

Its main feature is the guarantee of the capital paid in (net of entry fees), making it a safe haven for cautious savers. Its performance comes mainly from a bond portfolio, primarily eurozone government debt, considered low-risk.

From gross rate to net return in your pocket

When an insurer announces a rate, it is almost always the return net of management fees, but gross of social contributions. That is the first level of reading. To understand what you actually receive, you need to go step by step.

1. Gross return: This is the overall performance generated by the fund’s assets (bonds, etc.). This figure is rarely communicated to the public.
2. Return net of management fees: The insurer deducts its annual management fees from the gross performance. The result is the rate you see in rankings. Example: 3,20 % gross - 0,70 % in fees = 2,50 % net of management fees.
3. Return net of social contributions: On gains generated each year, the French state applies social contributions, currently 17,2 %. Example: On 1 000 € of gains (based on 2,50 %), 172 € are deducted. The return drops to 2,07 %.
4. Return net of income tax: This final step only applies if you make a partial or full surrender (withdrawal) from your contract. Taxation depends on the age of the contract and the amounts withdrawn. For a contract older than 8 years, tax is often nil or low thanks to annual allowances.

Watch the fee details

The contract’s management fees may be added on top of the euro fund’s own fees. In addition, contribution fees can reduce your starting capital. A contract with no entry fees and controlled management fees is therefore a prerequisite to optimize final performance.

The return that matters is the one that lands in your account. So you should always keep these successive deductions in mind to compare investments objectively.

Rate trends: why 2025 was a turning point

After a decade of near-continuous decline linked to central banks’ low-rate policies, euro funds have regained momentum.

This rise is explained by a simple mechanism: since 2022, insurers have been able to reinvest capital into new bonds offering much higher coupons. This inertia—caused by the gradual replacement of older low-yield bonds with new ones—has pushed average performance upward.

In 2025, the average return stood around 2,65 %, but with very large gaps. The best contracts, often subject to conditions, posted returns above 3,50 %, with some even approaching 5 % thanks to bonus systems.

For 2026, the trend should be stabilization, or even a slight increase, while the portfolio continues to renew itself. Barring a major rate shock, the period of sharp surges nonetheless seems to be over.

The limits of the euro fund you should not ignore

Despite its renewed attractiveness, the euro fund is not a miracle solution. It has limitations that you must understand before allocating your savings to it.

The inflation challenge

The main limitation is the real return. A 3 % rate may seem attractive, but if inflation is 2,5 % over the same period, the gain in purchasing power is only 0,5 %. Capital is guaranteed in nominal terms, but its ability to buy goods and services can erode. A saver’s primary goal should be to protect purchasing power—a mission the euro fund sometimes struggles to fulfill on its own.

Nominal return vs. real return

Don’t be blinded by the displayed (nominal) rate. Always calculate your potential gain after inflation (real). An investment that earns less than inflation makes you lose money in purchasing-power terms, even if the amount on your statement increases.

Increasingly restrictive access conditions

The best-performing euro funds are rarely accessible without a trade-off. To get the best rates, insurers often require investing a significant share of your payment (sometimes 30 %, 50 % or more) in units of account (UC).

These vehicles, invested in equities, real estate, or other assets, offer higher return potential—but also a risk of capital loss. The security of the euro fund is therefore “paid for” by taking risk on another portion of the contract. Contracts that still allow a 100% allocation to a high-performing euro fund are becoming scarce.

How to choose the right euro fund for your savings

Selecting a euro fund is not just about looking at last year’s rate. A more rigorous approach is needed to make an informed choice.

Here is a checklist of points to verify:

• Performance over time: Analyze returns over 3 or 5 years. A consistent fund is often preferable to a fund that posts an exceptional performance one year but disappoints in others.
• Contract fees: Check contribution fees (target 0 %), annual management fees (ideally below 0,8 %), and arbitration fees.
• Investment conditions: Can you invest 100 % of your capital in the fund? If not, what minimum percentage is required in units of account?
• Insurer strength: Favor well-known, financially solid insurance companies, even though the risk of failure is extremely low in France thanks to guarantee funds.
• Minimum initial investment: Some contracts require an initial payment of several thousand euros, while others are accessible from a few hundred euros.

Diversifying beyond the euro fund: toward a more high-performing and resilient portfolio

The euro fund is an excellent tool to secure part of your wealth, especially emergency savings or short-term projects.

However, for longer-term goals such as preparing for retirement or growing your capital, it is not enough. Diversification then becomes not an option, but a necessity.

This means spreading your money across different asset classes to smooth risk and capture different sources of performance. Units of account within Assurance vie are a first step. But there are other horizons. To know where to invest your money, you need to go beyond the beaten track.

The expert’s advice

Historically, low-rate periods have pushed investors to explore new frontiers. It is in this context that assets uncorrelated with traditional markets have emerged. Investing in European carbon allowances is one example. By positioning yourself in a market regulated by climate targets, you gain exposure to a price dynamic independent of classic stock-market cycles—which is a major advantage for a diversification strategy.

At Homaio, we offer one of these alternatives: investing in European carbon allowances (EUA). This is an asset that offers a different paradigm from the euro fund:

• No capital guarantee: This is the fundamental difference. The investment is subject to fluctuations in the carbon market and involves a risk of loss.
• High return potential: Historically, this market has delivered significant performance, although past performance is not indicative of future performance.
• Direct environmental impact: Each investment helps remove rights to pollute from the market, increasing pressure on industrial players to reduce their emissions. It is a way to align your portfolio with your convictions.
• Decorrelation: The value of carbon allowances is primarily linked to environmental policies and industrial activity, offering protection against volatility in traditional equity and bond markets.

The idea is not to pit these two worlds against each other, but to view them as complementary. The euro fund forms the secure foundation of your wealth, while investments like carbon allowances can be a performance and impact engine—provided you allocate a reasonable share of your capital in line with your risk profile. This is one of the best investments for those looking for both meaning and performance.

In 2026, the euro fund remains a safe value for the secured portion of your savings—provided you choose it carefully. Its return, while higher, must always be put into perspective with inflation and access conditions. To aim for real long-term growth of your wealth, diversification into more dynamic, purpose-driven assets—while understanding the associated risks—has become essential.

Frequently asked questions

What is the real return of a euro fund after fees and taxes?

The real return is what remains once all deductions have been taken out. Start from the rate net of management fees announced by the insurer. Then subtract social contributions (17,2 % on gains). Finally, in the event of a withdrawal, taxation on capital gains applies (generally low or nil after 8 years). Above all, compare the final result to inflation to know your gain in purchasing power.

Can you still invest 100% in a euro fund?

Yes, but it is increasingly rare for the best-performing funds. Many insurers make access to their best funds conditional on simultaneously investing part of the capital (e.g., 30% to 50%) in units of account (UC), which are not guaranteed in capital. You must read the conditions of each contract carefully.

Is the capital really guaranteed 100%?

Yes, the paid-in capital (net of entry fees) is guaranteed by the insurer. In the event of bankruptcy—a very rare case—the Fonds de Garantie des Assurances de Personnes (FGAP) steps in up to 70 000 € per insured person per insurer. The guarantee is therefore very robust.

Euro fund or Livret A: which should you choose?

The Livret A is ideal for immediate emergency savings: capital is available instantly and gains are fully tax-exempt. However, its return is capped and its deposit ceiling is low (22 950 €). The euro fund, via Assurance vie, offers a much higher ceiling, potentially higher returns, and very favorable taxation after 8 years. It is better suited to medium- or long-term projects.

Are there alternatives that combine security and impact?

Combining total security (capital guarantee) with direct environmental impact is complex. Responsible investment funds (via UC) or assets like carbon allowances can deliver strong impact, but they involve taking risk. The solution often lies in smart allocation: secure a base with the euro fund and dedicate another part of your portfolio to impact investments, accepting volatility risk to target a double return—financial and extra-financial.