Where to Invest Your Money to Aim for 7% Returns?

Savings Accounts Remain the Foundation of Security

Since February 1, 2026, the interest rate for the Livret A is set at 1.5% and for the Livret d’épargne populaire at 2.5%, according to the Ministry of Economy. These accounts play a central role in an asset management strategy: they allow for maintaining savings that are accessible, tax-free, and protected against capital loss. Their primary purpose is not to generate high returns but to secure unexpected expenses, short-term projects, or part of the capital. To aim for higher returns, the saver must then be willing to direct another portion of their assets towards more dynamic investments.

Term Deposits and Euro Funds to Stabilize Portfolio Allocation

Bank deposits offer a more transparent return than financial markets but remain far from a 7% objective. In March 2026, the Bank of France reported that household term deposits yielded an average of 2.26% for maturities of two years or less and 2.41% for maturities exceeding two years. In life insurance, euro-denominated funds play a similar stabilizing role. France Assureurs reported that the total outstanding amount of life insurance reached 2,107 billion euros at the end of 2025, with a net inflow of 50.6 billion euros for the year. These investments are not designed to achieve 7%, but they can balance a portfolio more exposed to markets or real estate.

REITs: A Source of Regular Income Worth Analyzing Over Time

SCPI play an important role in yield strategies because they allow investors to invest in commercial real estate without directly purchasing a property. Thus, the saver gains access to a diversified portfolio composed of various assets such as offices, retail, healthcare real estate, logistics, hospitality, or European assets, depending on the vehicles. Management is delegated to a specialized company, rents are pooled among several tenants, and income is generally distributed on a regular basis. For individuals who do not wish to personally manage a property, this is one of the primary attractions of this investment.

In 2025, the average distribution rate of SCPIs was 4.91%, compared to 4.72% in 2024, according to ASPIM. Net inflows reached 4.56 billion euros, up from 3.53 billion in 2024. These figures indicate that SCPIs continue to provide a higher income compared to savings accounts, term deposits, and the average euro funds. Therefore, they can contribute to a strategy aimed at higher returns, particularly for investors seeking regular income over the long term.

However, while some of the top performers last year managed to distribute returns of over 9%, the distribution rate should not be viewed in isolation. Firstly, it can vary significantly from one SCPI to another, and even from year to year for the same fund. Secondly, ASPIM also reports that the average share price variation was negative in 2025, at -3.45%, following -4.5% in 2024. Thus, actual performance depends on the distributed income, changes in share prices, fees, and the holding period.

The decrease in the price of certain shares does not mean that all SCPI are the same or that the investment has lost its appeal. It mainly reflects the adjustment of a real estate market dealing with rising rates, declining value of certain assets, and specific challenges in segments like traditional office spaces. Conversely, some diversified, European SCPI or those positioned in more resilient sectors have withstood better. The analysis should therefore consider several criteria: quality of the assets, occupancy rate, level of indebtedness, retained earnings, geographical diversification, fees, management strategy, and subscription price consistency. SCPI can be relevant in a portfolio, but more as a long-term real estate component rather than as a guaranteed yield product.

Bonds and Dated Funds: Enhancing Returns with Greater Transparency

Corporate bonds and target date funds can play a useful role in a portfolio aiming for more yield than savings accounts or life insurance funds, without fully shifting towards equities. Their strategy is clearer: the investor lends money to a state or a company, receives coupons, and then recovers the principal at maturity if the issuer does not default.

In the case of target date funds, this mechanism is pooled among several bonds, with a target maturity date known in advance. As of early 2026, some target date funds invested in corporate bonds still offer gross actuarial yields higher than regulated savings accounts and term deposits, sometimes nearing 4% to 5% depending on the options, targeted markets, and issuer quality.

However, this compensation heavily depends on the level of fees, the average portfolio rating, the remaining duration of the bonds, and interest rate trends. The AMF reminds that a bond carries three main risks: issuer default, interest rate fluctuations, and liquidity. A high coupon is therefore not a favorable anomaly: it compensates for higher credit risk. These instruments can be relevant in an intermediate segment, between security and dynamism, provided one checks the net yield after fees, sector diversification, issuer quality, and the proportion of higher-risk bonds.

Stocks and ETFs: The Long-Term Performance Driver

Stocks remain one of the primary asset classes for targeting high performance over the long term. The appeal is clear: investors get exposed to company growth, future earnings, and, depending on the market, dividends. Historical figures provide a benchmark, though they do not guarantee returns as there's always the risk of capital loss. Nevertheless, since its inception in 1957, the S&P 500 has recorded an annualized return of about 7% in price and approximately 10% with dividends reinvested, according to S&P Dow Jones Indices. The key is selecting stocks based on the intrinsic qualities of the companies and personal goals, while also adopting a genuine arbitrage strategy in the markets.

The MSCI World also demonstrates the strength, but also the volatility, of stock markets. The index rose by 28.40% in 2019, 16.50% in 2020, and 22.35% in 2021, before declining by 17.73% in 2022, then bouncing back by 24.42% in 2023 and 19.19% in 2024, according to MSCI. These fluctuations remind us that long-term averages can obscure very favorable years and sharp corrections.

ETFs offer access to this type of exposure with immediate diversification and often lower fees compared to many traditional funds. Their appeal is twofold: avoiding dependence on a single stock and reducing the impact of fees over time. They can also be suitable for a progressive investment strategy, to smooth out entry points. However, they do not offer protection against market declines. Be cautious, because if the tracked index falls, the ETF's value also decreases, and the investor can lose all or part of the invested capital. Stock ETFs can therefore serve as the dynamic component of a portfolio, but only with a long-term horizon and the ability to withstand several years of negative performance.

Private Equity and ELTIF: Greater Potential, But a Longer Horizon

Private equity is no longer exclusive to institutional investors or the very wealthy. It is gradually becoming accessible to individuals through life insurance, retirement savings plans, long-term funds, and new European vehicles. This shift follows an economic rationale: financing unlisted companies, infrastructure, private debt, or long-term projects while offering savers a source of diversification different from listed stocks and real estate.

According to France Assureurs, unit-linked contracts accounted for 39.1% of life insurance contributions in 2025, with a net collection of 42.5 billion euros in unit-linked products. This figure confirms savers' appetite for more dynamic supports than the euro fund, even though it does not solely pertain to private equity. The ELTIF 2 regulation, effective from January 10, 2024, aligns with this trend: it facilitates marketing funds invested in long-term assets to European individuals.

The AMF specifies that a French fund complying with ELTIF conditions must invest at least 55% in long-term assets. These vehicles can grant access to unlisted companies, infrastructure, or private debt. Their return potential can be higher than guaranteed supports because the investor agrees to finance less liquid and sometimes less transparent assets. However, no performance is guaranteed, and the investor is exposed to the risk of capital loss.

The trade-off is again significant: money can be tied up for several years, valuations are not daily, fees can be high, and exits depend on the fund’s schedule or pre-defined redemption windows. Private equity can thus enhance a wealth allocation, but rather as a minority, long-term, and diversified component, not as a substitute for savings accounts or euro funds.

Ultimately, aiming for 7% in 2026 is not about finding a miracle product, but about building a coherent allocation. Savings accounts protect emergency funds, euro funds and term deposits stabilize assets, REITs can provide real estate income, bonds offer greater visibility on coupons, while stocks, ETFs, or private equity can potentially deliver more performance over the long term. However, none of these investments combine high returns, guaranteed capital, and immediate availability. Each carries its own risks (volatility, capital loss, illiquidity, fees, taxation, interest rate risk, or credit risk) and should be evaluated based on the investment horizon, liquidity needs, financial situation, and risk tolerance of each saver. In investment, return is never standalone: it is always assessed within the context of the personal strategy in which it is embedded.