How to invest well in 5 steps?

In a world where savings account returns barely keep pace with inflation, letting your hard-earned money languish in a dormant account is a missed opportunity. Are you eager to transform your savings into a profitable investment? There's a plethora of options and strategies at your disposal. To help you navigate this complex landscape, here are six steps that are guaranteed to steer you toward successful investing.

How to invest well in 5 steps?

1. Define Your Investment Objective

Before you dive into the world of investments, it's crucial to ask yourself a fundamental question: "Why invest?" Your investment goals should align with your objectives and your investment horizon. The journey of financial assets, especially equities, is marked by cyclical ups and downs, but over the long term, the trend is upward.

  • If you're looking at a short-term investment (less than 5 years), such as saving for a down payment on a house, it's advisable to limit your risk exposure. Opting for high-risk investments in this scenario could lead to losses when you need your funds.
  • Conversely, if you're investing for a retirement that's 20 years down the road, you can afford to embrace more risk. Stock market fluctuations during this period can be offset by long-term gains.

Properly defining your investment objectives and horizon enables you to make informed decisions and optimize your risk tolerance.

2. Choose the Right Tax-Friendly Account

Your investments should find a home in the right tax envelope. The type of account you select will have tax implications, so choose wisely. In France, there are three major tax envelopes where you can park your financial investments: the securities account, the equity savings plan (PEA), and life insurance.

  • A securities account accommodates a wide range of financial assets, from stocks and bonds to speculative derivatives. While it's suitable for informed speculators and frequent traders, it doesn't offer any significant tax advantages.
  • The equity savings plan (PEA) is designed for investing in European equities or funds primarily invested in European equities. It comes with advantageous taxation, including tax exemption on earnings after five years.
  • Life insurance is a popular choice in France. It allows investment in various assets, including structured products and funds. It offers favorable tax treatment at two levels and is known for its flexibility and lack of investment limits.

In most cases, life insurance emerges as the most suitable tax envelope, considering its tax benefits and the diversity of eligible investment vehicles.

3. Understand and Manage Risk

Investing in stocks comes with both upward and downward fluctuations. These fluctuations are part of the game, but there's an overarching trend of wealth creation, innovation, and economic growth. This means that the risk of experiencing a loss decreases as your investment horizon lengthens.

Historical data reveals that diversified investments carry about a 30% risk of loss over one year. Over ten years, this risk drops to 10%, and over 15 years, it vanishes entirely. Diversified portfolios have never incurred losses over a 15-year period, even during challenging times.

Your exposure to the stock market should match your investment horizon. For short-term goals, favor less volatile assets like bonds and capital-guaranteed funds in euros.

4. Embrace Diversification

Diversification is a cornerstone principle of finance, and it holds true: "Don't put all your eggs in one basket." This strategy helps mitigate the risks associated with asset volatility and eliminates the threat of bankruptcy.

For instance, if the automotive sector in Asia underperforms, your investments in the luxury sector in Europe could help balance the scales.

To simplify your investment journey and avoid the complexities of selecting individual stocks, consider investment funds or Exchange Traded Funds (ETFs). ETFs, often called trackers or index funds, offer diversification at minimal costs.

5. Stay Steady During Market Fluctuations

If you've diligently followed the first four steps, short-term market ups and downs should not cause alarm. As an investor, you'll need to master emotional control and resist cognitive biases. While there may be periods of negative returns, a well-planned strategy will stand strong.

6. Explore Nalo: Tailored Investments for You

Nalo is your trusted partner in the world of investments. Our project-based approach offers personalized, diversified investments tailored to your goals and financial situation. For optimal tax efficiency, consider subscribing to a life insurance contract directly on our website.

What sets Nalo apart is our exclusive focus on ETFs, guaranteeing our clients the most competitive fees in the market.


Investing wisely is your ticket to financial security and growth. By following these six steps, you can embark on a journey that promises to make your money work for you, regardless of your investment goals or time horizons. Don't let your savings lie dormant; start your investment journey today and secure a brighter financial future.


1. Is it a good time to start investing now?

The right time to invest is now. The sooner you begin, the more time your investments have to grow.

2. How can I determine my risk tolerance?

Your risk tolerance depends on your investment horizon and objectives. Short-term goals call for lower risk, while long-term goals can accommodate more risk.

3. Can I change my investment strategy along the way?

Yes, your investment strategy can evolve with your changing goals and risk tolerance. It's essential to periodically review and adjust your approach.

4. Are there tax benefits to investing in life insurance?

Yes, life insurance offers favorable tax treatment, including tax exemptions on earnings, making it a popular choice for investors in France.

5. Why choose Nalo for investments?

Nalo specializes in ETFs, offering a cost-effective way to diversify your investments and providing tailored solutions to help you achieve your financial goals.

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