In France, stocks have proven to be the best investment over the last 40 years

A saver who has invested his money in French stocks for the last 40 years has made a better investment than in real estate or the Livret A, according to a study published Thursday April 25 by the Institute of Real Estate and Land Savings (Ieif ).

Between 1983 and 2023, money placed in companies listed in France returned on average 12,4% per year, taking into account the reinvestment of dividends paid, according to the annual Ieif study. It took as a reference the CAC All Tradable index, which includes, in 2024, 203 of the largest companies listed in France, including those in the CAC 40.

It is the best investment compared to investing in housing in Paris (10,4% per year), other real estate investments such as SCPIs (7,9%), life insurance (6,5%). , French government bonds (4,1%) and the livret A (3,5%).

Performance is calculated excluding management fees, according to the study methodology.

The financial context of these 40 years "is marked by an environment of falling inflation" which brought interest rates very low and with economic growth, a period favorable to stocks, explains Stéphanie Galiègue to AFP , deputy general director in charge of studies at the Ieif.

“But since 2021-2022, we have been in a transition period” with the return of inflation to higher levels,” she underlines.

The ranking is different depending on the given period: over 30 years, between 1993 and 2023, housing in France (9,3%) is more profitable than stocks (7,7%), or housing in Paris (7,4 .XNUMX%).

But stocks regain supremacy over 15 years, between 2008 and 2023 (9,9%), far ahead of these two categories (5,2% and 5,1% respectively).

In recent years, the financial performance of real estate has continued to slow down to the point of being negative over five years for certain categories such as real estate, a symbol of the difficulties in commercial real estate. The logistics sector, which has benefited greatly from the pandemic, is doing well by having a return on investment of more than 15% per year between 2018 and 2023, according to the study.

“The expression + don't put all your eggs in one basket + is often repeated but diversification is a macroeconomic reality” necessary for your investments, underlines Stéphanie Galiègue.