When you subscribe to a managed portfolio (gestion pilotee) in a life insurance contract, the very first step is to determine your risk profile. This profiling determines your entire asset allocation and, consequently, the risk/return profile of your savings over the long term. This is not a simple administrative questionnaire: choosing your profile is a structural decision that must reflect your financial situation, your investment horizon and your psychological tolerance for market fluctuations.
European MiFID 2 regulations (Markets in Financial Instruments Directive) require insurers and asset management firms to carry out a suitability test before offering a management mandate. This test evaluates your financial knowledge, investment experience, capacity to bear losses and your wealth objectives. Providers like Yomoni, Nalo and Ramify use online questionnaires with 15 to 25 questions to determine your optimal profile, while wealth management advisors conduct in-depth interviews lasting one to two hours.
The conservative profile: security as the absolute priority
Characteristics of the conservative allocation
The conservative profile prioritises capital preservation above any return consideration. The typical allocation comprises 60 to 80% in euro funds and secure bonds (government bonds, investment grade bonds), complemented by 10 to 25% in diversified equities and possibly a real estate allocation of 5 to 10% through SCPI or OPCI. The objective is to limit portfolio volatility while capturing a return slightly above the euro fund alone, which averaged only 2.6% in 2024.
At Yomoni, the conservative profile (profiles 1 to 3 out of 10) incorporates about 20% equity ETFs via the Amundi MSCI World ETF, with the rest split between bond ETFs and the Suravenir euro fund. At Nalo, the approach is similar with equity exposure capped at 25% for the most conservative profiles. WeSave offers a conservative profile where bonds exceed 70%, including inflation-linked bonds to preserve purchasing power.
Who is the conservative profile suitable for?
The conservative profile suits savers who have one or more of these characteristics:
- Are approaching retirement or already retired and depend on their savings to supplement their income
- Have an investment horizon of less than 5 years
- Cannot psychologically bear seeing their capital decline, even temporarily
- Use their life insurance as an income supplement through scheduled partial withdrawals
- Have concentrated the bulk of their wealth in this single contract, with no diversification elsewhere
Conservative profile: key figures for 2024
The average return of conservative managed profiles stood between 4.2% and 6.8% in 2024, driven by the simultaneous strong performance of both equity and bond markets. Annualised volatility remained contained between 3% and 5%, a level comparable to some boosted euro funds. In 2022, a crisis year, the maximum drawdowns observed were limited to -3% / -7% depending on the contract.
Performance and limitations of the conservative profile
Over the 2019-2024 period, conservative managed profiles showed an average annual return of 2.5 to 4.5% net of mandate fees, depending on contracts. Yomoni's conservative profile (profile 3) posted an annualised return of 3.1% over 5 years, while Nalo's reached 3.6% over the same period. In 2022, a difficult year for markets with a simultaneous decline in equities and bonds, temporary drawdowns remained contained between -3% and -7%, demonstrating the effectiveness of the secure component.
The main disadvantage of the conservative profile is its limited return which, after deducting total fees (contract + mandate + underlying funds, i.e. 1.2 to 1.8% per year) and inflation (which reached 4.9% in 2023 before falling to 2.3% in 2024), may generate only a modest real gain, or even a negative one during periods of high inflation. That is the price of safety.
The balanced profile: seeking the right compromise
Characteristics of the balanced allocation
The balanced profile aims for a compromise between performance and risk management. The allocation is generally split between 35 to 50% in euro funds and bonds, 30 to 55% in diversified equities (via ETFs such as Amundi MSCI World ETF or iShares Core MSCI World), and 5 to 15% in alternative assets (real estate through SCPI, commodities, sometimes private equity). This split captures a significant portion of equity market gains while cushioning declines through the secure and bond components.
At Nalo, the balanced profile (standard portfolio at 50% equities) relies on a diversified ETF basket including global equities, European sovereign bonds and corporate bonds. Ramify offers a balanced profile integrating a real estate allocation (SCPI) to strengthen diversification, while Mon Petit Placement offers a "balanced" profile composed of active funds selected by an investment committee.
Who is the balanced profile suitable for?
This profile is the most subscribed in France, representing about 45% of managed mandates. It suits savers who:
- Have an investment horizon of at least 5 to 10 years
- Accept capital variations of around 10 to 15% during a crisis
- Seek a return above the euro fund without taking excessive risks
- Are in an active savings phase with regular monthly or quarterly contributions
- Are saving for a medium-term project: funding children's education, a property deposit, or preparing for retirement in 10-15 years
Worked example: Emilie's journey
Emilie, 33, a salaried pharmacist in Strasbourg, opened a managed life insurance policy with Yomoni in profile 6 (balanced) 3 years ago. She made an initial deposit of 10 000 euros and set up 350 euros in monthly contributions. Her allocation consists of 50% global equity ETFs (Amundi MSCI World ETF, iShares Core S&P 500), 35% bond ETFs and 15% euro fund. After 3 years, her capital has reached 24 800 euros, representing an overall annualised return of about 6.2%. Her goal is to build a deposit for purchasing her primary residence in 7 years. With this trajectory and an estimated average net return of 5.5%, she could have around 58 000 euros by 2032, a sufficient amount to complement her existing savings and finance the desired deposit.
Performance and limitations of the balanced profile
Balanced profiles generated between 4.5 and 7% annualised return over 5 years, depending on mandates. In 2024, performance was particularly good: between 7% and 11% depending on managers, driven by the rise in global equity markets. At Yomoni, profile 6 posted 9.2% in 2024; at Nalo, the standard portfolio at 50% equities achieved 8.7%.
In 2022, temporary drawdowns reached -8 to -14%, but the 2023 recovery (+8 to +12% depending on profiles) erased these losses for the majority of contracts. The balanced profile offers the best statistical compromise between return and risk for the majority of French savers, provided a minimum 5-year horizon is respected.
The dynamic profile: aiming for maximum performance
Characteristics of the dynamic allocation
The dynamic profile makes equities the dominant component, representing 60 to 80% of the allocation. The euro fund is limited to 5 to 20%, with the rest invested in diversifying assets (listed real estate, private equity, commodities). Some contracts offer an aggressive profile, with 80 to 100% equities, for the most experienced investors. This is the case with Yomoni's profile 10, invested 100% in equity ETFs, or Goodvest's "ambitious" profile (SRI), exposed to more than 80% in sustainable equities.
At Ramify, the dynamic profile integrates a private equity component (up to 10%) and SCPI, alongside strong equity exposure through ETFs such as Amundi MSCI World ETF and Lyxor PEA Monde. This diversification across asset classes captures complementary return sources to listed equities.
Who is the dynamic profile suitable for?
The dynamic profile suits savers who meet these conditions:
- Have an investment horizon exceeding 8-10 years
- Have sufficient emergency savings elsewhere (3 to 6 months of expenses on a Livret A)
- Accept temporary drawdowns that can exceed -20% without panicking or modifying their strategy
- Understand that volatility is the price of long-term performance
- Do not depend on these savings for day-to-day expenses or short-term projects
Performance and limitations of the dynamic profile
Dynamic profiles posted between 6.5 and 10% annualised returns over 5 years, with significant dispersion between the best and weakest managers. In 2024, dynamic profile performance was exceptional: Yomoni's profile 10 posted +22.7%, driven by the spectacular rise in equity markets, particularly American ones. At Nalo, the 80% equity portfolio achieved approximately 16.5%.
In 2022, drawdowns could reach -15 to -22%, testing investors' psychological resilience. The key is not to panic and to maintain your strategy over the long term. An investor who sold in October 2022 at the lowest point would have crystallised an 18% loss, whereas one who held their positions recovered their entire capital by mid-2023 and then reaped substantial gains in 2024.
Detailed comparison of the three profiles
| Criterion | Conservative profile | Balanced profile | Dynamic profile |
|---|---|---|---|
| Equity allocation | 10-25 % | 30-55 % | 60-100 % |
| Euro fund / bonds allocation | 60-80 % | 35-50 % | 0-20 % |
| Annual volatility | 3-5 % | 7-12 % | 12-20 % |
| 5-year annualised return | 2.5-4.5 % | 4.5-7 % | 6.5-10 % |
| Maximum loss in 2022 | -3 to -7 % | -8 to -14 % | -15 to -22 % |
| Recommended horizon | < 5 years | 5-10 years | > 8-10 years |
| 2024 return | 4-7 % | 7-11 % | 14-23 % |
| Recovery time after 2022 | 3-6 months | 9-12 months | 12-18 months |
How to choose between the three profiles?
The three determining criteria
The profile choice rests on three fundamental pillars that every saver must honestly evaluate:
Investment horizon is the most objective and most structural criterion. The longer your horizon, the more risk you can afford to take because time smooths out fluctuations. As a rule, a horizon of less than 3 years calls for a conservative profile, between 3 and 8 years a balanced profile, and beyond 8 years a dynamic profile. Historical studies show that over any rolling 15-year period since 1970, global equities have always been positive, even including the 2001, 2008 and 2020 crises.
Risk tolerance is more subjective. It depends on your personality, your market experience and your ability to handle uncertainty. A saver who loses sleep as soon as their capital drops by 5% is not suited for the dynamic profile, regardless of their horizon. Conversely, an experienced investor who knows that downturns are temporary can comfortably handle a dynamic profile even with a 7-year horizon.
Overall wealth situation must be taken into account. If your life insurance represents the bulk of your financial assets, greater caution is warranted. If it is just one component among others (primary residence, PEA, comfortable emergency savings, stable income), you can afford a more aggressive profile on this specific contract, since other assets serve as a buffer.
Can you change profile along the way?
Most managed portfolio contracts allow you to change your profile at any time, with no switching fees. This is a considerable advantage of this management style. At Yomoni, Nalo and Ramify, profile changes are possible in a few clicks from the online dashboard, and the allocation adjustment is completed within 48 to 72 hours.
This flexibility allows you to implement a "progressive risk de-escalation" strategy (or glide path), particularly recommended as you approach your financial goal.
Beware of changing profile during a downturn
Switching from a dynamic to a conservative profile after a sharp market decline is the most costly mistake a saver can make. You crystallise your losses at the worst possible moment and prevent your portfolio from benefiting from the recovery. Profile changes should be motivated by a change in your personal situation (new project, change in horizon, early retirement), never by fear of the moment.
The progressive de-risking strategy
Progressive de-risking involves gradually reducing equity exposure as you get closer to your goal. Nalo has automated this mechanism with its "progressive securitisation": the profile is automatically adjusted based on the number of years remaining before the client-defined objective, without manual intervention.
In practice, a saver investing for retirement in 25 years would start in a dynamic profile (80% equities), then progressively move to a balanced profile around -10 years, then conservative around -3 years. This approach, inspired by American "target date funds", optimises the risk/return profile over the entire period.
The classic mistake: a profile that is too conservative out of market fear
The biggest mistake French savers make is choosing a profile that is too conservative out of fear of fluctuations, when their investment horizon would amply justify a more dynamic profile. Over 20 years, the capital difference between a conservative profile (net return of 3.5%) and a dynamic profile (net return of 7.5%) is considerable:
For an initial investment of 30 000 euros with no additional contributions, the conservative profile would reach approximately 59 700 euros while the dynamic profile would reach approximately 127 600 euros, more than double. With monthly contributions of 300 euros on top, the gap widens further: 152 000 euros in conservative versus 230 000 euros in dynamic. Giving up 78 000 euros of potential gains due to risk aversion is a considerable cost that many savers underestimate.
Intermediate and customised profiles
Beyond the three standard profiles
The three classic profiles (conservative, balanced, dynamic) are just a simplification. Many managers offer more granular profiles:
- Yomoni: 10 profiles numbered 1 to 10, allowing fine adjustment of market exposure
- Nalo: customised profile based on objective, horizon and risk tolerance, with integrated progressive securitisation
- Ramify: profiles integrating real estate (SCPI) and private equity alongside ETFs
- Mon Petit Placement: 4 profiles (volontaire, energique, ambitieux, intrepide) with a selection of active funds
The multi-profile approach: an elegant solution
Some contracts allow you to create multiple allocations with different profiles within the same contract. For example, you could allocate 60% of your capital in a dynamic profile for retirement (20-year horizon) and 40% in a conservative profile for a property purchase (4-year horizon). This goal-based approach, popularised by Nalo, is the most rational because it aligns the risk profile not with your overall temperament but with the specific horizon of each project.
Conclusion: a personal but rational choice
The choice of risk profile is a decision that commits your savings over several years and has a major financial impact. Take the time to answer the profiling questionnaire honestly, considering your actual horizon rather than your emotions of the moment. Assess your overall wealth before deciding, as the optimal profile depends on the place of this life insurance within all your assets.
Do not hesitate to seek professional advice if you are torn between two profiles. Remember that you can always adjust your allocation over time as your situation evolves. Above all, do not let fear of markets push you towards a profile that is too conservative if your horizon allows: over the long term, the greatest risk is not volatility, but insufficient return against inflation.
Disclaimer
The information presented in this article is provided for informational and educational purposes only. It does not constitute personalised investment advice in any way. Past performance is not indicative of future results. Any investment carries a risk of capital loss on unit-linked funds. Before making any investment decision, we recommend consulting a qualified wealth management advisor.