The Covid-19 crisis will have had an astonishing effect on the savings of the French: between the impossibility of spending because of confinement and health restrictions and aid measures from the government, the latter has exploded. It has increased by tens of billions of euros. So why not invest it to make it grow?
Investing is not as complicated as it used to be
Let’s be honest: we are not all a “wolf of Wall Street” nor a Warren Buffett: investing can be complicated. You have to know the market trends, anticipate the stock market results, follow the evolution of the prices of the various stocks that you own, diversify your portfolio of assets … and especially not to panic: a stock that falls one day can actually regain much more value in the days that follow.
Fortunately, for some time now, start-ups like Birdee have imagined automated systems using artificial intelligence. We call them “robo-advisors”: they analyze the data and give advice … or even automatically manage the portfolio entrusted to them, taking into account the desired risk-taking but also the types of desired investments: responsible, ecological investments , in technology, in commerce …
The user only has to be guided and choose to follow the advice given to him or not: he always remains in control of his decisions. Basically, it’s still his own money that is at stake.
Making stagnant savings profitable
More and more savers are turning to these automated solutions for part of their savings. Why ? Quite simply because they do not want to spend whole days following the evolution of charts, nor want their savings to stagnate. Because today, everyone knows, risk-free savings do not pay off: Livrets A have a historically low interest rate, 0.5%, and even euro life insurance funds have a return that sometimes does not even exceed the annual inflation rate.
Not to mention that this inflation, which is the major fear of investors at the start of 2021, should increase. An inflation that increases while the profitability of savings products stagnates, it is the risk of losing money. For an amount not to lose value, it must evolve at least identical to inflation … otherwise it is the purchasing power that decreases.
Remember: investing in stocks comes with risk. But this risk is taken voluntarily, and it is calculated. Moreover, Birdee warns you from the outset of the risk, and the gain, of the type of portfolio chosen … and is completely transparent about the fees to be paid for the management of the portfolio.