Flexible Fund or Equity management mandate: what difference?

By Arnaud Campion
Flexible funds or discretionary management

life insurance saving scheme, savings plan, securities account... When you want to start investing, it's best to have made yiour mind. Not always easy! Opinions differ on whether to invest in flexible funds or discretionary management. So which investment strategy should you choose?

Benefits of flexible Funds


A little reminder of flexible funds: what is it?


Entering the category of flexible diversified fundsthe flexible fund is an investment Unit (UCIT) or FCPs (mutual funds). Ideal for greater flexibility in the choice of securities investments, this investment strategy is based on several asset classes such as equities, bonds, money market, commodities, etc.


Why opt for an flexible fund?


Its main advantage better volatility of the fund with capital control

Because it is easy to access their documentation (management reports, key investor information document), the Flexible funds are not lacking in advantages: possibility to check the fees charged (even before becoming a customer), to analyse past performance or to anticipate the level of risk.


How to find the right fund?


The age, investment horizon and maturity of the assets are criteria to be taken into account when you wish to invest in a flexible fund. For example, M & G Optimal Income has an annualized performance of 4.6% with very low volatility over the last 5 years).

More information on investment advice: https://patrimoine.lesechos.fr/placement/fonds-sicav/030683067922-fonds-patrimoniaux-5-conseils-pour-en-tirer-le-meilleur-parti-2121792.php


The advantages of discretionary investment


Democratised by the Internet, discretionary management is the total delegation of your investment choices to a financial professional (financial expert or wealth advisor). It is an investment strategy particularly appreciated for those who lack the time, information or skills to manage their assets.


Why opt for discretionary management?


Its main advantage : asset management entrusted to an expert

The investment strategy is not necessarily within everyone's reach. Entrusting the management of your assets to an expert means trusting a professional who will be able to decipher all the data and seek a better performance for your assets. Managed management of your life insurance also limits risks: the manager follows a set strategy (prudent, balanced or offensive).


How to find the right asset manager ?


Start by choosing the right financial investment (life insurance, portfolio or trading account) to define the range of the investment and the tax benefits attached. Also define your investor profile, establish a specific mandate and monitor the activity of your investment (consult your manager's regular reports).

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