Investments form an integral part of the accumulation of wealth and yet there are so many who do not participate. The reason? Simply that there is a lack of information and access. Furthermore, the reputation of investment firms and banks have taken a knock and investor confidence needs to be restored. With this in mind, it’s critical that financial institutions that offer these products provide customers with as much information as possible in order for them to make informed decisions. The BNP Paribas Investments range seems to offer a great deal and this review seeks to uncover just how much.
Find out how National Bank of Abu Dhabi did in their investment review.
About BNP Paribas
A staple of the French banking diet, BNP Paribas has provided the French population with banking services for a number of years. Although the roots were in Brussels, there is no disputing that this a French bank that holds high value with the locals. An impressive balance sheet puts this bank among some of the top banks in the world as far as asset value is concerned. It shares are fair rating by its customers across the board and provide a number of critical services, as well is good-to-have products. The bank is built on the traditional banking structure, however, does have aspects of modernization to allow customers safe and convenient banking.
Risk Factor Gradings In Investments
Before investors invest their funds, it’s prudent for them to sit down with a financial advisor to determine their risk grading. This allows them to have a clear understanding of the amount of risk they’re willing to take on before selecting their funds and products.
- Very Low Risk – this has a very low risk of the investor losing their funds, however, the return might not be that impressive. There is still a slight chance of whole or partial capital and growth loss.
- Low Risk – This option is for those who are conservative but willing to take a slightly bigger risk. There is a chance of loss with this investment type, but lower than most. Furthermore, the return might not be ideal.
- Medium Risk – Still a bit conservative but will dip a toe into something that carries more risk, this option may result in a loss. The opportunity for a higher return is possible in this category.
- High Risk – Market conditions are quite volatile in this category and customers have a good chance of losing their funds. If things pan out, however, they do stand the chance to earn a significant return.
- Very High Risk – This is only for the salted investor who won’t suffer a massive financial failure when a loss occurs. This investment provides higher returns than most, but at the risk of total loss.
BNP Paribas has a good range of savings products as well. Read the full review here.
BNP Paribas Investments Product Offerings
Real Estate Investments
Diversipierre Real Estate UCI
Customers who wish to diversify their investment portfolio may find real estate an attractive option. This product is available in life insurance policies or investment contracts.
- The investment requires a minimum subscription amount of EUR 100.
- An aspect of the investment places 55% of the assets invested in tangible real estate.
- Furthermore, 40% of the assets invested is placed in real estate shares and mortgage-backed securities.
- Also, the bank recommends a minimum investment term of 8 years.
- Finally, this investment type is environmentally conscious which means it takes a closer look at the tangible real estate management. It requires the assets to be socially responsible.
Accimmo Pierre Reit
This investment type is often used to help consumers build capital for their retirement. Also, consumers can rest in the knowledge that there are 59 properties in the portfolio that make up more than EUR 1 billion in real estate assets.
- These are indirect investments into commercial real estate.
- Furthermore, this investment carries a risk of loss of capital.
- The portfolio consists of offices, business, and warehouses and consumers can invest from as little as EUR 1,910.
- Also, there is no guarantee on this investment.
- Customers can invest in this product without worrying about the management thereof. There is, however, a management fee.
- Finally, investors have the opportunity to earn quarterly earnings.
For a warrant price, consumers can purchase a warrant offer. This price is determined at the time of purchase and grants consumers the right to purchase and sell an underlying instrument. The price of purchase or sale is determined beforehand. Also, this warrant is an option listed on the stock market.
Customers have a number of certificates to choose from.
- Unlimited Turbo
- Best Turbo Certificates
- Capped (+)
- Floored (+)
This option allows customers to understand other markets and the economy a little better. Themes customers can take a look include:
- Euro Zone
- United States
- Central Banks
- Middle East
- Globalization, and
Programmed Savings Account – UCI Savings Plan
Customers who wish to invest in the BNP Paribas line of UCIs will use this as a vehicle.
- The plan allows customers to build their capital gradually.
- Also, customers have access to their portfolio in order to manage it at their discretion.
- Finally, when this plan falls under an Equity Savings Plan customers enjoy tax exemptions for five years after the initial payment.
Financial Instruments Account
This is the ideal account for those who wish to have access to all French, European, and International Securities. Furthermore, there is no limit or minimum deposit. There is also no minimum term.
Equity Savings Plan
Customers have access to a securities and cash account for investing and French and European real estate. Furthermore, this plan provides tax advantages.
- This account has a cap of EUR 150,000.
- It also provides tax advantages from the fifth year onwards.
- Customers may make partial withdrawals while retaining their Equity Savings Plan after eight years. It can also be converted into a tax-free life-annuity after this period.
- Furthermore, customers can save in the account at their own rate.
- There are a wide array of stocks and UCI funds to invest in.
- Finally, the bank will reimburse the transfer fees at a flat rate of EUR 150. This is if the minimum amount of the transferred Equity Savings Plan is EUR 5,000.
Mid-Market and SMB Equity Savings Plan
Customers enjoy access to a securities and cash account that allows them to invest in securities of both French and European SMBs and mid-market companies. Furthermore, customers will enjoy tax benefits.
- This account has a cap of EUR 75,000.
- Customers enjoy the tax exemption if they keep their account for a minimum of five years.
- They may also make partial withdrawals after eight years and still keep their plan.
- The account allows customers to save at their own pace.
- Customers have access to a wide array of funds, stocks, and UCIs to invest in.
- Finally, once the plan reaches the eight-year mark, customers may have it converted to a tax-exempt life annuity.
This is the perfect solution for those who don’t wish to take on the risk of investment on their own. It allows investors to invest a minimum amount over a period of time to create an investment portfolio.
- The club investment takes place over a term of 10 years.
- Customers may enter and leave the investment free of charge.
- The club can accommodate 5 to 20 members.
- Furthermore, the regular payouts cannot exceed an annual total of 5,500 euros per member.
- This account is opened through a financial intermediary.
- Customers may have access to the favorable tax provisions.
- Finally, this account is easy and flexible to work with.
Discover BNP Paribas Funds
These are all-in-one funds where customers allow the fund managers to make critical decisions on their behalf. This will adapt their portfolios whether they consist of stocks, bonds, and more.
- Flexible Solution
- L1 Multi-Asset Income
- Sélection Flexible
Socially Responsible Investing
These funds selections allow customers to invest in business and institutions who have taken social responsibility seriously. These include environmental protection, a social aspect, or good corporate governance.
- BNP Paribas Social Business France
- Green Real Estate Investment
- Investment in Human Capital
- BNP Paribas Aqua
- BNP Paribas L1 Smart Food
Contribute to the Development of Small and Medium Businesses
These investment funds are designed to take advantage of certain small and mid-cap French and European businesses.
- SMB Stocks
- Euroland Smallcap
- France Midcap
Funds By Management Type
Graphical Funds (Actions)
- Europe Responsable
Sector Funds (Europe)
Diversified Funds (Sélection Dynamique)
- Trésorerie 3 Mois
- Obli Responsable
- Obli Entreprises
- L1 Bond World Plus
- Convertibles Europe
For Equity and Bond Funds
- Production Monde
For Equity Funds
- Actions Euro Protégé
- Actions Monde Protégé
Discover whether the BNP Paribas Current Account range is on par with those from around the world.
Critical Reviews Rating BNP Paribas Investments – 9 of 10
It’s tough not to be completely enamored by this range as there are just so many different categories to choose from. Furthermore, customers have all the information they need to make a decision before even setting foot in the bank advisor’s office. The range covers a number of needs, which makes this an ideal range for investor newbies and those familiar with investing.
There is something that we picked up that we’re not too sure how to react to, and that is the fact that many of the products are greyed out. This means they are inaccessible, and this happens quite a few times across the various ranges. One such a product is the retirement investment, which is definitely something consumers would want. Our concern is that the bank may just force their customers to look for this product elsewhere. Other than that, an almost perfect range.
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