Choosing between a unit-linked contract and a euro-denominated fund contract depends on each saver's profile. While unit-linked contracts offer higher potential returns in exchange for a risk of capital loss, euro-denominated funds prioritise security with guaranteed capital, but more limited performance. This comparison analyses the characteristics of each type of investment: risk level, investment horizon, wealth management objectives, taxation and expected level of support. It helps you identify the type of contract best suited to your situation: conservative, balanced or dynamic.
| Euro Fund | Units of account | |
|---|---|---|
| Cover | Total premiums paid (denominated in foreign currency) minus the costs of the policy | Number of units of account |
| Financial risk | Supported by the insurance company | Supported by the subscriber |
| Underlying | Mostly government and corporate bonds | All types of financial assets authorised by the insurance company |
| Return/performance | Extremely limited, linked to the composition of the euro fund, the fall in government bond yields and the insurance company's policy on profit distribution | Potentially unlimited, depending on the performance of the policy’s underlying assets |
| Investment strategy | Limited to the insurance company's strategy for the management of the euro fund | Customisation of the strategy depending on the client's investment objectives |
| Investment limits | Limited to the part of the premium invested in euro funds by the insurance company | No investment limits (except for the choice of specific assets) |
| Exit penalties | Potential exit penalties in the event of early surrender (according to the company's euro fund) | In practice, there is no exit penalty for the policy’s underlying investments |