High-yield investment

What is a short-term high-Profit Investment?

A secure high-yield investment is an investment in financial products that are not necessarily secure, but whose management keeps risk under control by constantly reducing it. The investor's goal is to preserve their initial capital while generating an attractive return over the medium or long term, depending on the investment horizon.

Investing in currencies in 2026 can be a relevant solution, as we will see in this article. Before that, it is essential to look at certain fundamental types of investment. For some, these notions are familiar, but for those who want to deepen their financial knowledge and understand how to optimise their investments, these elements are crucial.

Secure high-yield investments are generally classed as low-risk or controlled-risk investments, with annual returns usually capped at 4%. Yet these returns do not cover inflation in the years following the COVID-19 pandemic. They are often more or less liquid savings plans, allowing the initial capital to be recovered whatever the market conditions.

Let us deliberately take the example of real estate, the French people's favourite investment, which is seen as one of the most secure but, conversely, is not a short-term high-yield investment. Since early 2022, in France and particularly in Paris, the property market has become the opposite of a secure, high-yield investment. Prices fell by an average of 10% in Paris in 2023 (source: notaries), which means that an investor who bought in 2018 could not recover their initial capital by selling today. This situation is made worse by inflation, which erodes the value of capital in a less visible but very real way.

To sum up, property prices fell by 2.1% in the first nine months of 2022, while inflation in France – one of the lowest in Europe – stood at 5.8%. The cumulative loss of property value for 2022 therefore reached 7.9%.

Today, in the face of fast-moving markets, solutions offering regular returns with controlled risk, such as Phocus1, rely on multi-underlying options strategies (major currencies, indices, commodities, rates, large caps).

Its performance engine is based on structured exposure management and permanent liquidity, giving investors a flexible approach suited to different market contexts.

Phocus1 is one of the investment solutions that aim to smooth performance over time while keeping a controlled risk framework.

As with any investment, past performance does not predict future performance, and the goal is a stable risk profile rather than chasing directional moves.

The diversity of the underlyings used allows genuine decorrelation from traditional investments, which are often sensitive to economic cycles.

This approach helps reduce the impact of periods of market stress and maintain a consistent level of risk across different environments.

Historically, Phocus1 has shown regular performance, depending on volatility conditions and the quality of risk management.

These results may vary with the macroeconomic context. Please bear in mind that capital is not guaranteed, and that past performance is not an indicator of future performance.

With our Luxembourg-based alternative investment fund, discover how to access professional management of global volatility and an eruptive geopolitical context.

Phocus1 deploys multi-underlying options strategies (currencies then options). Phocus1 delivers outstanding returns, with monthly profitability ranging from 0.5% to 2%. Past performance does not predict future results.

With our alternative investment fund in Luxembourg, discover how to invest through options strategies (currencies then options).

What is the investment horizon?

The investment horizon is essential, yet it is often overlooked when the focus is on return.

It refers to the period for which you plan to hold your investment, whether the total period or a specific maturity. Generally, the longer the investment period, the better the potential return. The chart below illustrates the correlation between type of investment, holding period and average return.

The liquidity of your investment is determined by the withdrawal options available, that is, how easily you can convert your investment into cash without affecting its value. The investment horizon distinguishes short-term investments from long-term ones.

Statistical data show that less liquid, longer-term investments tend to offer higher returns. There is a positive correlation between holding period and return, as shown in the chart below, which lists the different asset classes, their maturity and the average return they generate.

Phocus1 stands out by offering a short-term high-yield investment, with a 12-month maturity and permanent liquidity of funds, even before the 12-month term.

Phocus1 can therefore be considered a liquid investment with a 12-month horizon, with monthly profitability ranging from 0.5% to 2%. Past performance is no guarantee of future performance.

Why invest in an alternative investment fund in Luxembourg?

Luxembourg is recognised as one of the most attractive financial centres in the world, offering an advantageous legal and tax framework suited to international investors. This small state, whose economic growth has been stable and sustained for more than twenty years, is today one of the richest countries in Europe. Thanks to legislation that complies with European standards, it is a preferred haven for wealthy investors, ensuring transparency and security in a regulated financial environment.

Investing in Luxembourg is a strategic opportunity to secure and diversify your wealth while benefiting from optimised taxation and solid economic stability, unlike some countries facing worrying levels of debt. In 2025, Luxembourg's public debt represents only 27.5% of its GDP, compared with 130% in France and 155% in Italy, giving it exceptional financial resilience.

If you have cash to invest and want to protect your capital internationally, why not consider our alternative investment fund Phocus1, based in Luxembourg?

In summary: Key benefits of investing in Luxembourg

– Economic stability: low public debt (27.5% of GDP) providing solid financial security.

– Leading financial centre: 1st in Europe, 5th in the world, attracting international capital

– Diversified investments: a wide choice of secure assets, including life insurance and private equity.

– Attractive taxation and regulation: stronger protection for savers and an optimised tax framework.

One of the best short-term investments in Luxembourg

Past results do not guarantee future performance and must not be interpreted as a promise of return.

What are the best investment opportunities for good returns in 2025?

Faced with economic and political uncertainty in France, notably the tax burden and market volatility, it is essential to choose investments that offer a good balance between return and security. Here are some investment options considered safe bets, suited to different investor profiles.

• Life Insurance Investments

Life insurance remains one of the French people's favourite investments for its flexibility and favourable taxation. It comes in three types:

– Euro funds: capital guaranteed, but the return is often below inflation after tax.

– Unit-linked funds: invested in the stock market, with potentially high returns but no capital guarantee.

– Multi-support contracts: a combination of euro funds and unit-linked funds, allowing you to diversify your portfolio while controlling risk.

Why choose life insurance in Luxembourg? It offers additional protection thanks to the security triangle, guaranteeing segregation of assets and better protection of capital.

• Multi-Support Life Insurance

Multi-support life insurance lets you spread investments between secure funds and more dynamic investments on the financial markets. This type of contract offers:

– A floor guarantee, limiting losses when markets fall.

– Tax optimisation, with an exemption from inheritance tax up to €152,500.

– Wealth-planning flexibility suited to long-term investment (recommended minimum €200,000).

An investment of €500,000 can generate substantial interest and be passed on to beneficiaries in the event of death, with significant tax advantages.

• Real Estate Investment Companies (SCPI)

Investing in an SCPI from €200,000? Real estate investment companies (SCPIs) let you invest in property from €200,000, offering an attractive return of 3 to 5% per year.

The main categories of SCPI are:

–Yield SCPIs: regular income from rents collected on commercial buildings.

–Tax SCPIs: investment in residential property to benefit from tax advantages (e.g. Pinel and Malraux laws).

–Buy-to-resell SCPIs: acquisition, renovation and resale of buildings for an attractive capital gain.

Investing in SCPIs gives access to a diversified property market without the constraints of direct management.

• Rental Real Estate

Rental property remains an investment seen as safe, because it rests on a tangible asset: bricks and mortar. In terms of return, however, several constraints must be taken into account, including:

– Rent controls, limiting potential returns.

– Caps on rental periods, reducing management flexibility.

– Risk of unpaid rent, which can lengthen eviction times and increase management costs.

Despite these challenges, property investment remains attractive, whether new-build or existing.

Investing in new-build gives access to tax advantages, such as the 6 to 21% tax reduction under the Pinel law, and reduced notary fees. However, these advantages require a rental period of 6 to 12 years.

Investing in existing property, on the other hand, offers purchase prices generally 20 to 25% lower than new-build. A well-located property can offer a net return of between 2.5% and 7%, but it is essential to consider renovation costs and environmental compliance, which can affect overall profitability.

New regulations have led many owners to sell properties needing renovation, causing prices to fall in some regions, which can be an attractive buying opportunity.

• Private Equity

Private equity consists of investing in companies that are not listed on the stock market. This type of investment offers high return potential, but requires a strategic approach to limit risk.

How to succeed in private equity investment?

1. Choose the right management firm: it is recommended to go through recognised asset managers with a proven track record in the field.

2. Select the size of companies: investment opportunities vary across the following categories:

– Venture capital: financing promising start-ups.

– Growth capital: supporting the growth of established companies.

– Buyout capital: acquiring companies whose shareholders are selling (ideal for long-term stability).

3. Diversify your investments: working with professionals such as financial investment advisers (CIFs) spreads risk by diversifying sectors and companies.

“You need to mix themes as much as possible.” – Romain Chauvin, private equity specialist at Edmond de Rothschild.

4. Invest in vintage funds: these funds launch new ranges every year, spreading cyclical risk and ensuring stable returns over time.

Returns are assessed by vintage year, that is, by the date of the first investment, which makes it possible to track returns over several economic cycles.

Which is the most profitable investment between liquid savings and bonds?

Liquid savings, in the form of a current account, Livret A or Livret Jeune, give immediate access to funds. They offer optimal security, but their return is often below inflation, leading to a gradual loss of purchasing power. So, although these investments keep cash available in the short term, they do not necessarily help build wealth.

Bonds, for their part, are debt securities issued by states, companies or local authorities. They offer potentially higher returns but carry a risk: if the issuer goes bankrupt, the creditor may not recover all of their capital. As a rule, the higher the interest rate, the greater the risk. To limit this risk, it is recommended to choose bonds with moderate coupons issued by solid entities.

The choice between liquid savings and bonds depends on the investor's profile:

– If the priority is security and immediate availability, liquid savings remain the best solution.

– If the goal is to seek a higher return while accepting a certain level of risk, bonds can be an attractive option.

In conclusion, liquid savings guarantee security and flexibility, while bonds give access to higher returns, with risk better controlled through rigorous selection.

How to achieve a return of >10% in 2024?

Achieving a 10% return means identifying high-performing investments suited to your investor profile. Return, which measures the profitability of an investment, is calculated from the income generated relative to the capital invested. It can take different forms depending on the type of investment:

– Shares: the return is determined by the ratio between the annual dividend paid and the share price, plus any potential capital gain. Formula: (Annual dividend / Share price) x 100

– Real estate: the annual rental return is calculated taking into account rents received, the purchase price of the property, and charges and taxes. Formula: (Total annual rents / (Purchase price + running costs)) x 100

– Financial investments: profitability is measured by comparing the initial capital invested with the amount received at the end of the investment, after deducting management and entry fees. Formula: (Amount received / Amount invested) x 100

On average, so-called “high-yield” shares offer a dividend of 6% or more, which is still not enough to reach the 10% target.

Phocus1 is a Luxembourg AIF

Watch the interview with the founder of Phocus1

[TV Finance] Phocus1: Investing in currencies, a good idea in an inflationary period.

Watch the interview here on the Figaro bourse et placements website:

Which investment offers the highest returns in 2025?

Some types of investment can generate significant gains. It is essential to remember, however, that risk is proportional to the expected return and that capital is never guaranteed. Here is an overview of the most profitable investments in 2025.

Structured products, such as UCITS money market funds, offer annual returns of up to 9%. They are attractive for those seeking high-performance investments, as they allow some control over uncertainty and volatility.

Property dealing companies, accessible from €150,000 in cash, become attractive for generating profits. The principle is to take part in buy, refurbish and resell operations within FPCI-type companies (professional private equity funds), in the hope of reaching an annual return of 9 to 10% after a few years.

Investing in property abroad can offer attractive return opportunities, particularly in growing markets or markets less saturated than the domestic one.

Life insurance, especially unit-linked, and private equity are options for diversifying your portfolio and potentially obtaining higher returns, although these investments carry a higher level of risk.

Options are an investment class for experienced individuals. The principle is to speculate on a rise (call) or a fall (put) of an index or a share. The multipliers can be very advantageous, but potential losses are also large, as it is a highly speculative sector.

Cryptocurrencies offer particularly high potential returns in the short term. They are very diverse, with around 6,000 different currencies. Transactions are instant but never guaranteed, and their values fluctuate extremely. At the end of 2024, Bitcoin reached all-time highs, passing $100,000 in December. However, these investments remain very volatile and risky.

Investing in SRI funds lets you combine sustainable development and financial performance. You can invest in funds and SICAVs that take ESG criteria into account. SRI funds are generally offered by banks, insurers, mutual insurers and financial investment advisers. They can be held in securities accounts, PEAs or as unit-linked funds in life insurance.

Before investing in an SRI fund, it is important to understand that the SRI investment strategy can vary from fund to fund. The fund's SRI investment policy may cover the whole portfolio or only part of the assets. To select the companies to invest in, you can exclude those that do not meet basic social and environmental criteria and invest in those with environmental thematic approaches.

Investing in emerging countries can offer growth opportunities. According to a 2019 report by the International Monetary Fund (IMF), emerging countries were growing at 4% compared with 2% for developed countries. To know which emerging countries to invest in on the stock market, indices such as the MSCI Emerging Markets Index can provide valuable guidance.

Through these stock market indices, you can practise capitalisation, which consists of adding the interest generated to the initial capital.

Investing in an ETF remains one of the best money investments for emerging countries. ETFs aim to replicate the performance of a given index and to produce a return. They allow investments to be diversified at lower cost. However, emerging currencies fluctuate and sometimes make the monetary policies of emerging countries unstable. Currencies could therefore lose value against major currencies such as the euro or the dollar. One could thus imagine a rise in emerging indices wiped out by a fall in currencies. Investing in an ETF can therefore be a good money investment.

Sources

‍https://www.expat.org/expatries/patrimoine/investissement-securise.html

‍https://www.cic-epargnesalariale.fr/fr/epargnants/actualites-et-publications/dossiers/qu-est-ce-qu-un-fonds-monetaire/index.html

https://www.service-public.fr/particuliers/vosdroits/F34982

‍https://www.amf-france.org/fr/espace-epargnants/comprendre-les-marches-financiers/quest-ce-quun-marche-financier

‍https://etre-riche-et-independant.com/investir-etf-pays-emergent-bourse

‍https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111

‍https://www.amf-france.org/fr/espace-epargnants/comprendre-les-produits-financiers/finance-durable/comprendre-linvestissement-socialement-responsable-isr#Comment_investir_dans_des_fonds_ISR_

“I have always loved being an entrepreneur, and I have spent my life imagining things or services that people could adopt to change their lives.”

Phocus1 stands out by offering a short-term high-yield investment, with a 12-month maturity and permanent liquidity of funds, even before the 12-month term.

– A floor guarantee, limiting losses when markets fall.

Investing in an SCPI from €200,000? Real estate investment companies (SCPIs) let you invest in property from €200,000, offering an attractive return of 3 to 5% per year.

– Yield SCPIs: regular income from rents collected on commercial buildings.

– Tax SCPIs: investment in residential property to benefit from tax advantages (e.g. Pinel and Malraux laws).

– Buy-to-resell SCPIs: acquisition, renovation and resale of buildings for an attractive capital gain.

Investing in existing property, on the other hand, offers purchase prices generally 20 to 25% lower than new-build. A well-located property can offer a net return of between 2.5% and 7%, but it is essential to consider renovation costs and environmental compliance, which can affect overall profitability.

“You need to mix themes as much as possible.” – Romain Chauvin, private equity specialist at Edmond de Rothschild.

4. Invest in vintage funds: these funds launch new ranges every year, spreading cyclical risk and ensuring stable returns over time.

‍ https://www.expat.org/expatries/patrimoine/investissement-securise.html

‍ https://www.cic-epargnesalariale.fr/fr/epargnants/actualites-et-publications/dossiers/qu-est-ce-qu-un-fonds-monetaire/index.html

‍ https://www.amf-france.org/fr/espace-epargnants/comprendre-les-marches-financiers/quest-ce-quun-marche-financier

‍ https://etre-riche-et-independant.com/investir-etf-pays-emergent-bourse

‍ https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111

‍ https://www.amf-france.org/fr/espace-epargnants/comprendre-les-produits-financiers/finance-durable/comprendre-linvestissement-socialement-responsable-isr#Comment_investir_dans_des_fonds_ISR_