The Preferred Sectors of French Financial Investors

A recent study by the brokerage firm eToro reveals the investment trends of French retail investors, highlighting their preference for financial services and liquidity.
 

According to the latest data from eToro's Retail Investor Beat (RIB)—a survey of 10,000 retail investors in 12 countries—financial services are the most popular sector among French retail investors.
 

This trend contrasts with the common perception that retail investors focus primarily on technology stocks.
 

Financial services, real estate, and energy are the three sectors most heavily held by French retail investors, with 67%, 38%, and 29% of the investors surveyed, respectively, reporting that they hold stocks in these sectors. This preference for financial services can be partly explained by the sector’s recent outperformance; it is the second-largest sector in the world and one of the least expensive, benefiting from a combination of lower interest rates and stronger loan growth.
 

When it comes to asset classes, cash is the most popular choice among French investors, with 74% of them holding liquid assets such as savings accounts. This trend has intensified this year, as risk-free savings rates—which have been high for a long time—are widely available in many major economies.
 

When asked in which sector they are most likely to increase their investments, financial services and real estate top the list for French retail investors, with 14% and 12% of respondents, respectively. Among asset classes, cash is still considered the greatest opportunity, with 22% of French investors stating that they would prioritize it.
 

However, investment preferences vary considerably from one country to another. While French, British, and American investors favor liquid assets, German and Spanish investors prioritize cryptocurrencies. This divergence can be explained in part by the attractiveness of savings rates in the various countries.
 

Antoine Fraysse-Soulier, head of market analysis at eToro, comments on these figures: "As markets continue to deliver returns for investors in 2024, the fact that savings rates remain very attractive means that cash will remain the dominant asset class among retail investors, at least for a few more months."
 

"However, with the ECB's recent rate cut and other major central banks expected to follow suit, the balance will soon shift further in favor of stocks and other asset classes, such as real estate."
 

The eToro study highlights French retail investors' preference for financial services and liquidity, while also pointing out significant differences in investment intentions across different countries.