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Fees for Direct Investments in Equities and Collective Investments Continue to Decline in France

Strategic Insights

— 1 min read

The French Financial Markets Authority (AMF) Household Savings Newsletter has released an update on the evolution of fees applied to direct investments in equities or through collective investments. The study also examined investors' understanding of the risk and liquidity of unlisted real estate investments. The findings reveal that fees for direct investments in equities are decreasing, with neo-brokers charging the lowest fees. Meanwhile, collective investments saw a continued downward trend in fees, with a significant drop in average annual fees for French equity funds.

Key Takeaways:

  • Fees for direct investments in equities have decreased, with neo-brokers charging the lowest fees, averaging 0.13% for an order of 1,000 euros.
  • In network banks, the average cost of a 1,000-euro order, which was 0.80% in 2020, is 0.67% in January 2025, down 16% in 5 years.
  • For collective investments, the downward trend in French fund fees observed for almost 15 years was confirmed in 2024, with average annual fees for French equity funds falling from 2.3% to 1.4% (a drop of around 40%).
  • Diversified funds have seen a drop of around 33% in average annual fees, falling from 2.1% to 1.4%.
  • A qualitative study among 25 investors revealed that liquidity risk is well understood, but there is misinterpretation of redemption conditions in real estate investments funds and investments in crowdfunding.
  • The risk of loss of invested capital was not clearly identified by participants in participative financing.

Statistics:

  • 0.13%: average fees for neo-brokers on an order of 1,000 euros.
  • 0.67%: average costs of a 1,000-euro order in network banks in January 2025, down 16% in 5 years from 2020.
  • 0.45%: average fees for online-only providers (online banks and online brokers) on an order of 1,000 euros.
  • 1.4%: average annual fees for French equity funds in 2024, down from 2.3% in 2010 (a drop of around 40%).
  • 2.1%: average annual fees for diversified funds in 2010.
  • 1.4%: average annual fees for diversified funds in 2024 (a drop of around 33%).
  • 2024: year in which a qualitative study was conducted to test investors' understanding of regulatory information, risk, and liquidity in real estate investments funds and investments in crowdfunding.

Sources:

  • AMF Household Savings Newsletter.
  • Study conducted in December 2024 among 25 investors.

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