Getting started with investing
Where should I start if I want to invest?
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Here are the essential steps for getting off to a good start:
- Build an emergency fund: keep 3 to 6 months of expenses in a Livret A (the French tax-free instant-access savings account) before you invest.
- Pay off expensive debt: consumer loans, revolving credit and the like cost you more than you can realistically earn.
- Open a PEA: the PEA is a French tax-advantaged share plan, and even with EUR 10 the tax clock starts on the day you open it.
- Invest regularly: EUR 100 a month into a World ETF is an excellent way to begin.
- Stay patient: investing is a marathon, not a sprint.
How much do I need to start investing?
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There is no absolute minimum! You can start with as little as:
- - **EUR 10**: enough to open a PEA and start the tax clock running
- - **EUR 50 to 100 a month**: a solid start for building an ETF portfolio
- - **EUR 200 to 500 a month**: the pace that builds meaningful wealth
What matters is not the amount but consistency. EUR 100 a month for 20 years (EUR 48,000 invested) can grow into more than EUR 100,000 thanks to compound interest.
What are the risks of investing in the stock market?
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The main risks are:
1. Risk of capital loss Markets can fall and your portfolio can lose value. Historically, though, over periods of 15 years or more, equity markets have always ended up positive.
2. Volatility risk Markets can swing by 10 to 30% within a few months. That can be stressful if you are not prepared for it.
3. Timing risk Buying just before a crash hurts in the short term, but DCA (investing a fixed amount at regular intervals) neutralizes that risk.
How can you reduce these risks? - Diversify (a World ETF rather than a single stock) - Invest for the long term (15 years or more) - Only invest money you do not need - Do not check your portfolio every day
What is an ETF, and why is it recommended for beginners?
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An ETF (Exchange Traded Fund) is a stock-exchange listed fund that tracks an index.
A concrete example: the MSCI World ETF tracks the performance of around 1,600 companies across developed markets. By buying a single unit, you are diversified across Apple, Microsoft, LVMH, Toyota and many more.
Why it suits beginners : - ✅ Instant diversification (hundreds of companies) - ✅ Very low fees (0.1% to 0.5% a year versus 1 to 2% for actively managed funds) - ✅ No need to pick individual stocks - ✅ Can be held inside a PEA (tax advantage) - ✅ Transparent and easy to understand
Our recommendation: a single World ETF (such as Amundi CW8) is enough for a diversified, efficient portfolio.
Do I need a financial adviser?
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For most retail investors, no, it is not necessary.
When an adviser is NOT worth it: - A simple portfolio (ETFs plus savings) - Assets below EUR 100,000 - A standard tax situation
When an adviser CAN be worth it: - Substantial assets (above EUR 500,000) - A complex situation (moving abroad, estate planning, a business) - A need for someone to keep you steady - Advanced tax planning
Watch out for conflicts of interest: bank advisers are usually paid on the products they sell, not on your performance. Prefer an independent wealth adviser (CGP, the French designation for a fee-based independent adviser).
Alternative: learn it yourself with our free guides and use Patrimoine360 to track your investments.
PEA and tax wrappers
What is the difference between a PEA, an assurance-vie and a securities account?
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Here is how the three wrappers compare:
See the full guide for the detailed comparison.
Recommended order of priority: 1. PEA: always first for shares and ETFs 2. Assurance-vie: for the euro fund and for estate planning 3. Securities account: for anything that is not PEA-eligible
Can I hold more than one PEA?
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No, French law allows only one PEA per person.
You can, however, combine: - 1 standard PEA (EUR 150,000 cap) - 1 PEA-PME (EUR 225,000 cap, counted together with the PEA)
For a couple: - Each partner can hold their own PEA - So up to EUR 300,000 of contributions per household
Holding several PEAs is illegal and carries a fine. Banks are supposed to check, but if the fraud is detected, only the first PEA opened is kept.
What happens if I withdraw from my PEA before 5 years?
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A withdrawal before 5 years closes the PEA and triggers tax on the gains.
Tax on a withdrawal before 5 years: - Capital gains taxed at 30% (flat tax) - Or the progressive income tax scale plus 17.2% social levies (if you opt for it)
Exceptions that allow a withdrawal without closure: - Redundancy - Disability (category 2 or 3) - Early retirement - Starting or taking over a business
Our advice: only put money into a PEA that you will not need for at least 5 years. For your rainy-day savings, use the Livret A.
Are dividends taxed inside a PEA?
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No, not as long as they stay inside the PEA!
This is one of the great advantages of the PEA: - Dividends you receive are reinvested automatically with no tax - Gains you realize (selling one share to buy another) are not taxed - Gains are taxed only when you withdraw
Example: You receive EUR 1,000 of dividends in your PEA. You can reinvest every euro of it (versus EUR 700 net in a securities account after the flat tax).
After 5 years: on withdrawal you pay only 17.2% in social levies on your total gains (dividends plus capital gains).
Investment strategies
What is DCA, and why is it recommended?
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DCA (Dollar Cost Averaging) means investing the same amount at regular intervals, whatever the market is doing.
How it works: - You invest EUR 200 every month in an ETF - When the market is high → you buy fewer units - When the market is low → you buy more units - Result → a smoothed average price
Advantages: ✅ Removes the stress of finding the "right moment to buy" ✅ Automatically takes advantage of dips ✅ Builds a regular investing discipline ✅ Avoids emotional mistakes
Drawback: in theory, investing everything at once (lump sum) is slightly more profitable if markets rise. Psychologically, though, DCA is far easier to stick to.
Should I invest in individual stocks or in ETFs?
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For 95% of retail investors, ETFs are the better choice.
ETFs: ✅ Instant diversification ✅ No company analysis required ✅ Far less time to manage ✅ Often outperform actively managed funds ✅ Very low fees
Individual stocks: ✅ Potential to outperform (rarely) ✅ The feeling of "owning" a company ❌ Concentrated risk ❌ Significant analysis time ❌ Frequent emotional mistakes
Our recommendation: - 90 to 100% in ETFs (MSCI World, S&P 500 and the like) - 10% at most in individual stocks you hold "for fun"
Studies show that even professionals struggle to beat the indices over the long run. So why make it complicated?
How should I split my portfolio by age?
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A classic (if simplistic) rule of thumb: "100 minus your age = % in equities"
A more modern approach, based on your time horizon:
20 to 35 years old (25 to 40 year horizon) - 90 to 100% equities (World ETF) - Time smooths out volatility
35 to 50 years old (15 to 25 year horizon) - 80 to 90% equities - 10 to 20% bonds or euro funds
50 to 60 years old (5 to 15 year horizon) - 60 to 70% equities - 30 to 40% in safe assets
60 and over (approaching retirement) - 40 to 50% equities - 50 to 60% in safe assets
Important: these are guidelines, not hard rules. Your own tolerance for risk matters just as much!
Should I invest in cryptocurrencies?
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Cryptocurrencies are highly volatile, speculative assets. They can have a place in a diversified portfolio, but only with caution.
On the plus side: - Potentially uncorrelated with traditional markets - Promising blockchain technology - Exceptional past returns (with no guarantee they repeat)
On the minus side: - Extreme volatility (drops of 80% are possible) - Risk of total loss (projects that fail) - Uncertain regulation - No clear intrinsic value
Our recommendation: - 5% of your total portfolio at most - Bitcoin and Ethereum only (the most established) - Money you are prepared to lose entirely - Leave it untouched for 5 years or more
If you are a beginner: focus on the PEA and on ETFs first. Crypto can come later, as the icing on the cake.
About Patrimoine360
What is Patrimoine360?
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Patrimoine360 is a free wealth tracking app that lets you bring all of your assets together in one place.
What you can do: - Track your stocks and ETFs in real time - Track your cryptocurrencies and DeFi wallets - Connect your bank accounts (through secure aggregation) - Keep an eye on your property holdings - See how your total net worth evolves - Track your dividends and passive income - Set savings goals
Our mission: make wealth management available to everyone, with powerful free tools of the kind usually reserved for wealthy private banking clients.
Is Patrimoine360 really free?
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Yes, the free version of Patrimoine360 is fully featured and has no time limit.
Included for free: - Unlimited tracking of stocks and ETFs - Crypto and DeFi tracking - A complete net worth dashboard - Financial simulators - Savings goals
Premium version (optional): - Automatic bank connection - Real-time wallet synchronization - Advanced performance history - Priority support
We believe wealth management should not be reserved for the wealthiest. The free version is enough for 90% of our users.
Is my data secure?
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Security is our absolute priority.
Security measures: - Encryption: all data is encrypted in transit (TLS) and at rest - Passwords: hashed with bcrypt (irreversible) - Bank connection: through Powens, an aggregator licensed by the ACPR (the French banking regulator) - No access: we cannot carry out any transaction on your accounts - Hosting: data hosted in Europe (GDPR) - Read only: we see only balances and transactions, never your credentials
We never sell your data to third parties. Our business model rests on premium subscriptions, not on reselling data.
How do I contact support?
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There are several ways to reach us:
Email: contact@patrimoine360.com - Reply within 24 to 48 hours on weekdays - Priority support for Premium members
Contact form: [Contact page](/contact)
FAQ and guides: have a look at our full guides first: - [Beginner investing guide](/guide-investissement) - [Savings guide](/guide-epargne) - [PEA guide](/pea) - [Finance glossary](/glossaire)
We read every message and keep improving Patrimoine360 thanks to your feedback!