2018: a change in investor behaviour?

— Investment tips — 4 minutes read

In July 2017, the Belgian government announced a series of important reforms including the establishment of a tax on securities accounts of more than €500,000 which should take effect in 2018.

Following this announcement, many are already wondering how i twill affect investor behaviour. Indeed, according to L’Echo, real estate, art, gold and unlisted shares are expected to become alternatives to shares, bonds, funds held as securities accounts.

According to them, the debate over real estate is still open, with on the one hand those who are betting on the rise of prices and on the other hand those who predict a growth in interest rates which will in turn halt the evolution of real estate prices.

When it comes to art, the market remains very sensitive in times of financial crisis. And on top of the fact that art works don’t sell when the economy is going bad, transaction costs are higher than in the financial market.

Gold on the other hand is seen as an interesting alternative because of its estimated progress in the coming years.
Finally, unlisted shares are also a way to counter this tax. These shares are accessible to individuals who are willing to invest very large sums of money directly into companies (private equity) or by others who wish to invest more affordable amounts through participatory financing platforms such as MyMicroInvest.
But as L’Echo explains, a direct investment or an investment through a crowdfunding platform exposes the investors to the risk of one single project.

At MyMicroInvest, we have always valued the importance of portfolio diversification for our members. That’s why, in a willingness of risk minimisation that we developed a new diversification service called “Tracer”.

Thanks to the Tracer you will be able to invest in a predefined number of businesses that fit a set of objective criteria. While being hands-off, you retain full control over every investment.Through Tracers, each investor can reduce his risk exposure by investing in a number of startups. Even if many startups fail, some succeed and can generate significant returns for their investors.

When investing in young enterprises through MMI, a good rule to follow would be the 10/10/10 rule: you should only invest 10% of your savings you can set aside for the next 10 years, in at least 10 companies.

Please read this before investing through MyMicroInvest

Investing carries serious risks, including partial or total loss of capital. Please invest responsibly.

MyMicroInvest runs a crowdfunding platform that enables the public to finance innovative companies by participating in their capitalization. The proposed investment, for a minimum amount of 100 EUR, comes in the form of Notes issued under Belgian law, which represent a claim against the issuer, MyMicroInvest Finance, a public limited company under Belgian law headquartered at 5 Place Sainte Gudule, 1000 Brussels (n° 0538.839.354, R.P.M. Nivelles).

The total amount brought in at the end of the offer shall be used by MyMicroInvest Finance to subscribe to a capital increase in the company/companies listed and promoted above. They are denominated in Euros. They do not offer any guarantee of yield or of reimbursement of capital. The Notes have an unlimited duration and the return on investment depends entirely on the performance of the investment made via the proceeds of the Notes issued by MyMicroInvest Finance.

The nominal value of the Notes corresponds to the sum of the subscription and does not include the costs of the issue nor the payment of expenses described below. MyMicroInvest Finance charges an additional subscription fee amounting to 5% of the nominal amount. The expenses linked to the payment of the subscription amount are borne by the investors. Transaction fees are 1.85% for credit card payment and 2% for manual bank transfers. If the transaction is made immediately on the platform, there is no fee.

The Noteholders bear the Expenses Relating to the Underlying Assets. The investors should be taxed on the income paid by MyMicroInvest Finance as if such income were paid directly to them (dividends are subject, as a general rule and for private individuals who are Belgian residents, to a withholding tax of 30%, pursuant to article 269 of the Income Tax Code, or to capital gains tax).

We strongly advise you to read the Terms of Investment carefully before purchasing Notes, and in particular, to consider the risk factors that are described therein. We draw the attention of the potential investor to the fact that there is a risk that the goals of the company/companies will not be reached, which might lead to a substantial reduction in the expected revenue and thus incur a risk of insolvency or at least of low yield, and even zero or negative yield.

Any complaint relating to an investment in the Notes can be addressed to the headquarters of the issuer indicated above or to the Service de Médiation pour le Consommateur, Boulevard du Roi Albert II 8 - 1000 Brussels, tel.: +32(0)2.702.52.20, fax: +32(0)2.808.71.29, email: contact@mediationconsommateur.be