The euro fund is mainly made up of bonds and Treasury bills - a debt security issued by the State. It may also include a smaller portion of real estate and shares depending on the manager's wishes. Thus, it makes it possible to offer a capital guarantee, unlike units of account. It is also possible to recover the invested funds at any time.
Each year, the interest earned is reinvested - this is the ratchet effect.
However, the return on this low-risk investment is declining. According to the ACPR, it was 1.46% in 2019, compared to 2.80% in 2013. This drop is explained by the reduction in the ECB's key rates in recent years.
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