LOÏC BRONDEAU | PATRIMONY & SOCIAL PROTECTION

Understanding Before Deciding • Educational Study • September 2026

Euro Funds: Can You Lose Money?

Guaranteed capital, preserved purchasing power?
Historical study on the period 2017-2023

Yes and no. First, we need to define what we mean by “losing money.”
The euro fund benefits from a guarantee from the insurer according to the terms of the contract, particularly regarding fees. However, guaranteeing capital in euros does not guarantee its purchasing power. [1]

Let’s Take a Concrete Example

An investor has €100,000 invested at the beginning of 2017. By successively applying the average rates of euro funds from individual contracts published by the ACPR for 2017 to 2023, after social contributions, their savings reach approximately €110,570 by the end of 2023. [2-5]

On the surface, everything seems fine: they made money. But, adjusted for the rise in prices between December 2016 and December 2023, this €110,570 represents only about €94,000 in initial purchasing power. [6, 7]

+10.6% nominal capital… but −6.0% purchasing power.
The capital has increased on the statement. The quantity of goods and services it allows to purchase has decreased.

Comparison of the initial investment, final nominal capital, and its equivalent in euros from December 2016. Bar scale starting from zero. Market average simulation, not the performance of a specific contract.
Thus, there has been no capital loss in this simulation. However, there has indeed been an erosion of the purchasing power of the savings.

Why Do We Invest Our Money?

Protecting an amount and protecting a life project
The conclusion is not that one should abandon the euro fund. It remains useful for securing part of one’s wealth and meeting certain short-term objectives, taking into account the fees and the availability conditions of the contract.

The idea is also not to choose between euro funds and stocks. They serve different needs and expose investors to different risks.

Accepting a share of volatility, with moderation
Diversified stock investments can help seek capital growth over a long duration. In return, their value fluctuates and they can lead to losses, including when one wishes to recover their money. They do not guarantee either capital or protection against inflation.

This brings us back to the real question that every investor should ask themselves: why am I investing my money?
Most often, it is not just to get rich or seek absolute returns. The primary motivation is a much simpler thing: to protect one’s money and what it will allow one to do tomorrow.

And it turns out that sometimes, seeking to protect one’s purchasing power in the long term requires accepting a degree of uncertainty. Not by going to the casino, nor by paying for online trading training. But by accepting a reasonable share of volatility, compatible with one’s projects, horizon, and capacity to endure losses. Everything is in the nuance.

The absence of volatility does not mean the absence of risk.
Sometimes, the most invisible risk is simply not being able to buy tomorrow what one’s savings allow one to buy today.

Three Questions to Give a Role to One’s Savings

• What amount should remain available for unforeseen events and near-term projects?
• What share can be invested over a longer duration?
• What decline can I withstand without compromising my projects?

This study focuses on a past period marked by rising inflation. It does not mean that euro funds lose purchasing power every year, nor that their future returns will be the same.

The Numbers and the Method

A reproducible simulation, explicit assumptions

¹ Average rates net of deductions on outstanding amounts, before social contributions, individual contracts including open groups.
² Assumption of allocation of 2017 products at a rate of 15.5%, then 17.2% from 2018; the actual treatment depends notably on the date of account registration. [2-5, 8]

Capital: €100,000 × product of (1 + annual rates after SC) = €110,569.72. The calculations use unrounded rates. No deposits or withdrawals; interest reinvested; no entry fees and other fees not included in the rates; before any income tax upon redemption. This succession of averages is not an investable fund.
Inflation: INSEE CPI, all households, France, all products, base 2015: 100.65 in December 2016 and 118.39 in December 2023. Cumulative increase: 118.39 / 100.65 − 1 = 17.63 %. Final purchasing power: €110,569.72 × 100.65 / 118.39 = €94,001.54. The average CPI does not exactly reflect the expenditure basket of each household. [6, 7]

The correct formula: real return = (1 + nominal return) / (1 + inflation) − 1. Simply subtracting inflation is an approximation. Annual averages of inflation and year-over-year changes should not be confused.

Official Sources - Clickable Links

[1] ABE Infoservice - Life insurance contracts and financial supports
[2] ACPR - Revaluation 2018, no. 105 (rates 2017-2018)
[3] ACPR - Revaluation 2019, no. 115
[4] ACPR - Revaluation 2022, no. 149 (historical 2020-2022)
[5] ACPR - Revaluation 2023, no. 163
[6] Insee - Final CPI of December 2016
[7] Insee - Final CPI of December 2023
[8] DGFiP - Life insurance: social contributions since 2018

Loïc Brondeau - Expert in Wealth and Social Protection
Allianz Patrimoine & Protection Sociale BORDEAUX CLEMENCEAU EXPERT - Loic BRONDEAU • 20 cours Georges Clemenceau, 33000 Bordeaux
06 64 62 82 76 • loic.brondeau_1@allianz.fr

General educational study, September 2026. Past performances are not predictive of future performances. This document does not constitute personalized advice.