PEA Funds: the complete guide to increasing your savings

Article sponsored by BDLCM

The PEA (Share Savings Plan) is a savings product developed specifically for investments in shares. A PEA Funds It is made up of securities chosen by financial experts. By investing in this fund, individuals are entitled to a share of the assets’ performance if their value increases. This financial product accessible to French tax residents allows you to invest in the French market, but also in Europe. With a PEA, the maximum investment limit is €150,000. That of a PEA-SME is 225 thousand euros. Investing in a PEA fund is an operation to consider in the long term, particularly to benefit from the tax advantages associated with this financial product.

What are the tax advantages of the PEA fund?

You can terminate a PEA at any time. If the buyback operation takes place within five years of the investment, you will not be able to access its advantageous tax treatment. Withdrawals made during this period result in the termination of the plan, except in four cases:

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  • The acquisition or creation of a company.
  • A dismissal.
  • Disability status or early retirement of the PACS holder, their spouse or partner.
  • Withdrawal of PEA from securities of companies in liquidation.

After five years of holding, the gains made thanks to your PEA fund are exempt from income tax. They are only subject to social security contributions which represent 17.2%. It turns out it’s more advantageous than life insurance or a bond account. The first benefits from preferential taxation after eight years, but continues to be subject to PFU (Single Withholding Tax) of 30%. This rate includes tax on social security contributions, but also income tax. Capital gains generated by the securities account are also subject to the PFU. A particularly attractive instrument for long-term investors, the PEA offers the possibility of partial or total withdrawals at any time, without losing tax advantages.

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Although PEA offers notable advantages, it is essential to recognize the risks inherent in stock investments. Financial markets are volatile: the value of shares can fluctuate. The support of an expert is essential to maximize your chances of profit and, at the same time, minimize risks.

How to invest in a PEA fund?

The PEA fund is an investment accessible to everyone, even beginner savers. By providing exposure to multiple financial markets, it presents less risk than investing in individual stocks. It is essential to choose a PEA fund developed by a renowned manager and whose products have been proven. Even though past performance does not predict future performance and is not constant over time, check the results of the fund under consideration. Any PEA holder can qualify to invest in this PEA fund. The acquired shares are transferred to the PEA.

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Find a reliable partner

Since 2008, BDL Capital Management has offered BDL Convictions, a PEA fund based on an enlightened vision of delivering results. It was created to manage group savings, but also those of individuals in a perfect balance between vigilance and performance. This Long Only fund is made up of European Union, Swiss, Norwegian and British stocks. Invests in companies whose market capitalization or turnover exceeds one billion euros.

The aim of BDL Convictions is to outperform the STOXX Europe 600 index while limiting risks. A team of 16 analysts is dedicated to composing this fund. More than 1,500 meetings with companies, as well as numerous field visits, are held annually. BDL Capital Management experts get to know a company, its managers, and its vision before making their choice.

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The fund includes, on average, between 30 and 50 investments of which a minimum of 75% are eligible for the PEA. To diversify its investments, BDL Convictions may also invest in other products. Currency hedging derivatives, US or Japanese regulated stocks/indices, company shares worth less than one billion euros and other UCITS complete the PEA fund.

Thanks to the PEA fund, access stock market investments with ease. It provides you with specialized management of your savings for an investment strategy with high long-term potential. Thanks to its advantageous tax system, optimize your earnings to finance all your projects.

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