How to invest in OPCI ?
Mostly invested in real estate, OPCIs (Organismes de Placement Collectif Immobilier) differ from SCPIs (Sociétés Civiles de Placement Immobilier) in the composition of their portfolio. Diversified solution par excellence, it is advisable to evaluate the parameters to invest well.
OPCI: a diversified investment
Diversification is one of the keys to wealth management. It consists in particular in investing in assets that are decorrelated from one another. Equities, bonds or real estate, these assets evolve according to partially different parameters and markets. Moreover, they do not have the same degree of volatility. Nor do they present the same risks.
OPCIs are mainly invested in physical real estate. They also have a diversified component that may include listed real estate companies, unlisted real estate assets, etc.1, investments but also a liquidity pocket. For comparison, according to the Association Française de la Gestion Financière, 95% of SCPI assets are made up of physical real estate. The stone thus makes it possible to counterbalance the volatility that the financial pocket can bring.
OPCI: what risk/return ratio?
Accessible with small amounts, these funds can be useful, in particular, to build up an estate. Like SCPIs (95% of which are invested in physical real estate), OPCIs facilitate access to commercial real estate. Indeed, the direct acquisition of commercial real estate, offices, trade, tourism or health requires a high entry ticket. Subscribing to OPCI units allows you to delegate the selection and management of a property in the face of demanding regulations. The performance potential of the OPCI depends first of all on the investment strategy of the manager. The type of property selected, its quality and location are essential. It may be office, health, residential or retail property. The evolution of OPCIs therefore depends on the real estate market. The economic situation is also a determining factor, both in terms of rental demand and the vacancy rate of the properties held. Neither the income generated by OPCIs, nor their potential capital gains, are guaranteed.
This collective savings solution may also include financial products up to 35%. This financial pocket is more volatile and potentially more risky. Indeed, it is subject to the fluctuations of the stock market.
OPCI: a long-term investment product
The recommended holding period for OPCIs, of more than 10 years, takes this risk/return ratio into account. It should also allow for the amortization of subscription and management fees. Given this investment horizon, it may be interesting to buy OPCIs within the framework of life insurance. The taxation of this envelope is indeed advantageous after eight years.
What are the risks of OPCIs?
Like all real estate investments, OPCIs present a risk of capital loss due to changes in the real estate market. Income is not guaranteed and may vary both upwards and downwards depending on the performance of the fund. Investment in OPCI units is considered on a long-term basis with a recommended investment horizon of 10 years. Liquidity is limited, as the management company does not guarantee the resale of units. And as with any investment, past performance is no guarantee of future performance.
1 51% to 60% in unlisted real estate or OPCIs depending on their legal form: 51% in the case of a SPPICAV (Société de Placement à Prépondérance Immobilière à Capital Variable) and 60% in the case of a FPI (Fonds de Placement Immobilier)