Paris CAC 40: Market overview
What is the CAC 40?
The CAC 40 is a French stock market index. It’s made up of 40 of the most prominent listed companies in the country.
The French stock market’s regular trading hours are Monday to Friday 9am to 5:30pm CET (8am to 4:30pm GMT).
Companies listed on the CAC 40 market index are called constituents. Household names on the CAC 40 include L’Oréal, Pernod Ricard and Renault.
How to invest in the CAC 40
You can choose to buy the shares of individual companies listed on the CAC 40, or track the performance of the index as a whole.
Common ways to track performance include investing in index tracker funds or Exchange Traded Funds (ETFs). This method of investing provides more diversification than choosing individual shares but you should remember that all investments go down as well as up, so you could get back less than you invest.
Investing in individual companies isn’t right for everyone – it’s higher risk as your investment is dependent on the fate of that company. If a company fails, you risk losing your whole investment. You should make sure you understand the companies you’re investing in, their specific risks, and make sure any shares you own are held as part of a diversified portfolio.
If you’re not sure of the suitability of an investment for your circumstances seek advice.