Life insurance: these account units allow you to take advantage of the stock market crash

Life insurance is not cut to allow you to be reactive to the upheavals of the Stock Exchange. However, account units (UC) now allow you to invest automatically during market hollows. A mechanism that prevents the saver from withdrawing their capital from the worst time, and enjoying the rebounds of the clues.

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Good news for the Stock Exchange: CAC 40 found its level this week this week last April 1. Either the course that was his before the crash triggered by Donald Trump’s announcements on the recovery of customs duties. However, this is a missed opportunity for those who would have withdrawn their capital from stock markets before this rebound. An investor who would have placed his capital when the Parisian index touched his lowest, on April 9, would have for example recorded a 13%performance.

Fortunately, if you are invested in the financial markets via your life insurance, you can now choose units of account (UC) scheduled to invest your capital in moments and thus take advantage of any rebounds. This is the case of a UC which has just been launched by the Maccsf mutual for its life insurance contracts, in partnership with Pictet Asset Management.

Funds that automatically invest when the scholarship is at the lowest

The savings placed on this UC “Pictet Mégatendances progressive” is initially invested in full in monetary and bond products. A “wait” placement to make savings grow at lower risk. Then the sums are gradually invested in stocks up to 6% per quarter, to reach 100% four years after subscription. A device that makes it possible to smooth the entry point and therefore to avoid investing everything when the value of the shares could be the highest.

But as a bonus, this fund has a systematic acceleration mechanism for equity investment. “In the event of a decrease in the 5% equity pocket, an additional and automatic payment of 5% takes place, in order to take advantage of the opportunities offered by shares at reduced prices”summarizes Philippe Parente, Commercial Director of Pictet Asset Management France. A reactivity in principle impossible in life insurance, since a period of one to three days is necessary between the passage of the order and its execution: “As the mechanism is integrated into the management of the fund, the investment is made directly the same day, and not in delay, at a time when the hollow can be passed, for example”explains Roger Caniard, financial director of the MACSF group.

An investment strategy on the low points of the joint stock exchange to other UCs, such as the Dôm Reflex fund, launched in 2015, and which also consists “Waiting for market reductions above 5%. Up to a third of the portfolio – placed 90% in bonds and 10% in liquid products – can then be invested in stocks ”, explains Vincent Priou, CEO of Dôm Finance. According to the management company, since its creation in 1987, the CAC 40 experienced 55 of these “impacts” corresponding to a drop in session of more than 5%. They were followed within three days by rebounds between +3% and +15%.

And the strategy which consists in capturing these rebounds seems to bear fruit: if since its creation, the Dôm Reflex I fund has a total performance limited to 17.82%, for its part, the Pictet Mégatendances Progressive – which already existed abroad since 2008 – has garnered 9.5% of net annualized yield of management fees.