2023-10-04 06:00:13
BAPTISTE ALCHOURROUN
The time for revenge has finally come. Money market funds increased by 1.96% over the first eight months of 2023, after seven years of ordeal marked by negative performances. A heresy for these products invested in very short-term debt securities, theoretically without risk for the saver.
The year 2023 marks their rebirth under the effect of the spectacular rise in key rates by the European Central Bank (ECB), whose deposit rate went from -0.50% in June 2022 to 4% since September 14 .
“The movement is coming to an end. The ECB should then stabilize its key rates for six to nine months, at least until spring 2024., estimates Olivier Robert, director of rate management at BFT Investment Managers. Translation: money market funds should continue to perform well in 2024 as key rates remain high. “The performance of our products should be around 3.20% for the whole of 2023”believes Olivier Robert.
This level allows monetary funds to regain a place of choice among the risk-free investments available to savers, alongside bank books and term accounts, and the unrivaled regulated savings (3% for the Livret A and the Sustainable and solidarity development booklet).
Beyond their performance, money market funds have an advantage over savings accounts: they are paid on a daily basis and not fortnightly. Additionally, they are completely liquid, unlike term accounts. It is therefore possible to place an amount there for the duration of your choice, without any constraints. They can be taken out directly with a bank to be placed in a securities account, or as part of a life insurance contract.
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Many contracts offer a return bonus on the euro fund to savers who invest a fraction (30% to 50%, for example) of their investment in units of account, such as equity funds, but also money market funds. “The good idea is to invest part of your contract in monetary funds: this allows you to boost the return on your fund in euros with the bonuses provided by insurers, without increasing your risk and while benefiting from the attractive performance of monetary »notes Christophe Brulé, deputy general director of the Degroof Petercam Wealth Management bank in France.
Management fees to monitor
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