Building wealth: which investments to diversify your portfolio?

Building wealth is an objective shared by the vast majority of people, whether the aim is to protect their family, prepare for retirement or fund a life project. Building a portfolio does not happen by chance: it requires a long-term vision, a regular savings capacity and a wealth strategy tailored to one's situation. This guide covers the reasons to get started, the steps to follow, the available investments and the diversification levers, including unlisted assets, to grow your capital over time.

A capital received as an inheritance is a common starting point: discover how to invest an inheritance.

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Why build wealth?

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Building wealth serves several objectives that often accumulate over the course of a lifetime. The first is security: having accessible savings allows you to deal with unexpected events (job loss, unplanned expense, income drop) without destabilising your household. The second is retirement planning, as income mechanically falls once working life ends. Building wealth also means funding major projects (buying a primary residence, funding children's education) and, in time, preparing the transfer of capital to loved ones under favourable conditions.

In France, household wealth still relies heavily on real estate, which accounts for nearly 62% of gross household assets according to INSEE. Diversifying beyond property alone is therefore a key priority for balancing a portfolio. A first step is learning to manage your wealth with a broader perspective.

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At what age should you start building wealth?

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The best answer is simple: as early as possible. Time is the investor's greatest ally, thanks to the mechanism of compound interest, which puts both capital and already-generated gains to work. An investment started at 25 has a far longer horizon than a savings effort begun at 45, which allows for measured risk-taking in the highest-performing assets.

Age and investment horizon shape allocation. A young professional can favour dynamic long-term investments, while someone approaching retirement will progressively secure their capital. Starting early also allows the savings effort to be spread over time and market cycles to be absorbed more comfortably.

Starting later is not a dead end: with a 10 to 15 year horizon, preparing for retirement at 50 remains entirely feasible by combining pension optimisation with capital building.

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The steps to building wealth

Building wealth follows a structured three-step approach.

Taking stock of your situation and defining your objectives

Everything starts with an assessment: income, expenses, existing savings, debt and life horizon. Setting clear objectives (preparing for retirement, protecting your family, generating supplementary income) shapes the entire wealth strategy and the acceptable level of risk.

Determining your savings capacity

The next step is identifying how much you can save each month without reducing your standard of living. A widely used rule of thumb is to allocate around 10 to 20% of income to savings, automating contributions to make them painless and consistent.

Saving regularly, then investing

Savings are the fuel; investment is the engine. Once an emergency fund is in place, available capital is progressively deployed into higher-yielding vehicles according to your risk profile. Consistency is key: investing small amounts each month smooths entry points and reduces the impact of volatility.

Which investments to build wealth with?

A solid portfolio combines several investment families, from the most liquid to the longest-term.

Emergency savings (savings accounts)

Regulated savings accounts (Livret A, LDDS) form the foundation: accessible and capital-risk-free, they allow you to hold the equivalent of three to six months of expenses in reserve. Their return remains limited, however, which keeps them in the safety category rather than the performance one.

Life insurance

A true all-purpose wealth tool, life insurance allows you to hold both secure euro funds and more dynamic unit-linked investments within a single wrapper. Its favourable tax treatment after eight years and its role in estate planning make it an essential pillar for building wealth over the long term.

Real estate: primary residence and buy-to-let

Real estate remains the cornerstone of French household wealth. Buying a primary residence acts as forced savings and eliminates rental risk. Buy-to-let investment generates income and allows the use of mortgage leverage, financing part of the acquisition through credit to multiply investment capacity.

Unlisted assets and private equity

Long reserved for institutional investors, unlisted assets are now opening up to retail investors. Private equity involves investing in companies not listed on the stock exchange, at various stages of development (venture, growth, LBO, secondary). Over the long term, this asset class has delivered a net return of 12.4% per year over ten years for the French market, compared to 8.9% for the CAC 40 with dividends reinvested (France Invest/EY). In return, it requires locking up capital for several years. To go further, discover how to invest in unlisted assets.

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Diversifying your portfolio to limit risk

Diversification is the golden rule for building lasting wealth. Spreading capital across multiple asset classes, geographic regions and investment horizons smooths risk: when one asset class falls, another may compensate. A portfolio too concentrated in a single vehicle, however strong its performance, remains vulnerable.

Unlisted assets play a valuable diversification role here, as their performance is partly decorrelated from listed markets. Historically inaccessible due to very high minimum tickets, they are now opening up to retail investors through pooled mechanisms. Fundora uses a professional private equity fund (FPCI) that pools subscriptions from multiple investors within a single structure, which then invests in selected private equity strategies. Effective management is handled by Kyoseil Asset Management, an AMF-approved portfolio management company, under a mandate. The performance targets displayed are objectives, not guaranteed returns, and unlisted investment carries a risk of capital loss. To compare unlisted and listed markets, read our analysis on building a diversified portfolio.

Optimising the tax treatment of your wealth

Taxation directly affects the net return on a portfolio. Several wrappers allow for legal optimisation. Life insurance benefits from a reduced tax framework after eight years of holding. The PEA encourages investment in European equities with income tax exemption on gains after five years (excluding social levies). Certain investments in SMEs qualify for an income tax reduction under the IR-PME scheme (18% subject to conditions). Finally, holding taxes (real estate wealth tax on property assets) and transfer taxes must be factored into any wealth strategy from the outset.

Planning the transfer of your wealth

Building wealth also means preparing its transfer. Acting early reduces inheritance tax and protects your loved ones. Several tools exist: lifetime gifts, which allow assets to be transferred while alive using renewable allowances, and life insurance, whose specific succession framework makes it a preferred transfer instrument. Structuring your estate in advance avoids blockages and maximises the share actually passed on to heirs.

Building a tailored wealth strategy

There is no one-size-fits-all strategy: the right allocation depends on your objectives, risk profile, time horizon and family situation. An effective wealth strategy combines security (emergency savings), return (equities, real estate, unlisted assets) and tax optimisation, adjusting the balance over time. Working with a wealth management adviser helps build a coherent allocation and adapt it over time, staying the course through market cycles. To explore the options, discover how to invest your money and invest in private equity.

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FAQ: building wealth

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What makes up a person's wealth?

‍Wealth encompasses all the assets you hold: real estate (primary residence, buy-to-let), financial investments (life insurance, PEA, securities accounts), unlisted assets, accessible savings, and professional assets. Subtract liabilities (primarily mortgage debt) to arrive at net wealth.

What level of wealth is considered comfortable?

‍It depends on the benchmark used. In France, median gross household wealth is around €177,000 (INSEE). The threshold for the wealthiest 10% is well above that, at around €700,000 in gross assets (INSEE). These figures are indicative and vary by age and household composition.

Can you build a property portfolio without a deposit?

‍Yes, through 110% financing, which covers the purchase price and notary fees. Banks are more demanding without a deposit, however, and favour profiles with stable income. Buy-to-let investment, where rental income repays part of the loan, is particularly well-suited to this approach thanks to mortgage leverage.

How much should you save each month to build wealth?

‍There is no universal amount. A common rule is to save between 10 and 20% of income. Consistency is what matters most: automated contributions, even modest ones, compound effectively over the long term thanks to compound interest.

Is private equity accessible for building wealth?

‍Yes. Long reserved for institutions due to high minimum tickets, private equity is now accessible to retail investors through pooled structures such as FPCIs, which aggregate multiple subscriptions. It is a long-term investment, carrying a risk of capital loss and low liquidity, to be integrated within a diversified allocation.