Become an expert on finance!

We want to make finance accessible and understandable to everyone. Julien Hostache, President and Co-founder of Enerfip, appreciates the importance of choosing to train in this omnipresent and fundamental field in our daily lives:

“I realize today how crucial finance is as a field for which we receive relatively little training in our educational backgrounds. Having not studied in this field, I realize that this gap is a real disadvantage, because finance is omnipresent in our lives. It influences our daily lives, and it is regrettable to leave it exclusively in the hands of a few, who do not always make the best choices, in my opinion. This is why the responsible finance we offer is so important. It must be democratized, made understandable and accessible to all. Especially since finance, contrary to what one might believe, is not that complicated. Some may seek to complicate it, but the basic mechanisms and tools are within reach. everyone! The more people master these concepts, the more they will be able to debate and make informed investment choices in line with their values. This is a key societal issue so that everyone can regain control over their financial decisions and contribute, at their own level, to projects that have a truly positive impact.”

Whether you are a novice or an expert, consult our FAQ to better understand sustainable finance, question financial solutions, and act with impact!

What is finance?

In economics, finance is the field that studies the management of a company's or organization's financial resources. It is the set of mechanisms that provide the economy with the capital it needs to function. Playing a key role in a country's competitiveness and wealth, finance encompasses many sub-fields such as international, public, market, sustainable finance, etc.

What is the difference between saving and investing?

Even though they are complementary, investing and saving are two very distinct things.

• On the one hand, investing means placing funds in something with the aim of making a profit. In the financial world, an investment – ​​whether in real estate, stocks, bonds, short, medium, or long term – aims to grow and increase the value of your assets.
• On the other hand, saving refers to saving or spending something moderately to avoid depleting a reserve or to build one up. It is a method of conserving cash for short-term use or to deal with unforeseen events. Generally, savings are associated with money placed in current accounts or bank books.

How does inflation work and what is its impact?

The INSEE (National Institute of Statistics and Economic Studies) defines inflation as the loss of the purchasing power of money, resulting in a general and lasting increase in prices. Not to be confused with the rising cost of living, inflation is a national phenomenon that disrupts the entire economy, both households and businesses.

💡 Did you know?

To assess inflation, INSEE uses the Consumer Price Index (CPI). However, this is a partial measure, as it only estimates the average change in the prices of products and services consumed by households without taking into account the rest of the economy.

Inflation leads to changes, or even an imbalance, which, even if moderate, has direct effects on purchasing power. Households see prices rise without receiving wages and support commensurate with this change. As a period of uncertainty, inflation also plays a key role in the erosion of savings and the rise in real estate market rates. Not all of these consequences of economic uncertainty affect everyone equally. Low-income households, who spend a larger portion of their income on basic necessities, are harder hit than wealthy households who have more assets that can appreciate with inflation.

Why is diversifying your investments important?

If you're interested in investing and saving, you've probably heard the phrase: “The most important thing in investing is not to put all your eggs in one basket!”. In other words, you need to diversify your savings to optimize returns and manage risk. Why is it recommended to select different asset classes, sectors, and geographic areas? This allocation allows you to limit your exposure to fluctuations in a specific market. By diversifying your investments, you will offset the potential decline in certain assets with the rise in others. In short, you will have a more stable portfolio in the face of economic uncertainties!

Discover our blog article

What is the difference between a green bond, a sustainable bond, and a social bond?

1. Also known as a green bond, a green bond is intended for a project with a positive environmental impact. Unlike a so-called traditional bond, it specifies what it is financing and its green nature.
2. A sustainability-linked bond – or sustainability-linked bond – concerns projects that sustainably meet ESG (Environmental, Social, and Governance) criteria.
3. A social bond, on the other hand, aims to finance projects with a social impact, particularly for the most vulnerable populations. The indicators must be measurable and verifiable, like the performance objectives.

Discover our blog article

What is an investment fund?

A collective investment that collects and invests your money, an investment fund allows you to invest in various assets such as securities, bonds, stocks... or even real estate! As a financial vehicle, it is an ideal solution for accessing financial or real estate opportunities that are difficult to achieve individually.

Managed by a management company, it applies a strategy defined in advance to optimize profitability and spread risks. This model promotes diversification, thus limiting exposure to a single asset.

What is crowdfunding?

Also known as crowdfunding, crowdfunding has been reshaping the economic landscape for the past ten years. An alternative to traditional bank loans, this type of financing allows a project leader to raise funds online, through a dedicated online platform – such as Enerfip – from contributors to finance a specific project.

Discover our projects

What are the different forms of crowdfunding?

There are three forms of crowdfunding:

• crowdlending :This is a form of participatory lending where you lend money to a project in exchange for interest. This type of crowdfunding is often used for short-term projects. The typical rate of return can vary, but is generally between 3% and 8% per year. However, it is important to consider risks, such as default, which can affect the final return;
• crowdequity : This allows you to invest in the capital of a company, with the possibility of receiving dividends and making capital gains. The potential return is often higher than that of crowdlending, but it comes with increased risks, including market volatility and uncertainty about the success of the company.
• real estate crowdfunding: This involves investing in real estate projects, often with higher returns than other types of crowdfunding. Returns can reach 10% or more, but they are highly dependent on the success of the real estate project and market conditions. Compared to other forms of crowdfunding, real estate offers a certain security thanks to the tangible value of the properties, but it is not without drawbacks, such as construction delays or fluctuations in the real estate market.

💡 Did you know?

Real estate crowdfunding is not subject to real estate wealth tax (IFI), which can represent a tax advantage for some savers.

How does Enerfip select its projects?

Description

At Enerfip, the project's theme is the first selection criterion. It obviously has to be aligned with our professional sector, namely the energy transition! In short, Enerfip selects renewable energy production projects, but also anything related to energy efficiency or soft mobility. The second selection criterion concerns the nature of the financing. Generally, Enerfip finances projects that are at an advanced stage of maturity or companies that are well-developed and financially stable.

A pillar of our daily lives, finance influences both our personal choices and major economic and environmental trends. During this Financial Education Week, through this FAQ, we wanted to give you the keys to better understand its mechanisms and, above all, to understand sustainable finance as a lever for action.

"Sustainable investing is not simply a way to give yourself a clear conscience. It is much more than that! It is a real lever for action that allows everyone, at their own level, to act on what they consider necessary in the world around them. It is a tool to influence things in a direction that we consider virtuous. In this sense, sustainable investing is a means offered to investors, savers, and citizens to have a positive impact and actively participate in the transitions that we must make." Julien Hostache, President and Co-founder of Enerfip

Become an agent of change! 🌱