One of my friends wants to start investment for his kid, starting amount 1M and monthly of 10k
What would be the best funds to invest? Should they put 1M all in one go or spread out?
1MEUR, 1MUSD or 1MSEK?
First of all look at the tax effect. Think about how active you intend to be and select the appropriate account type.
Then look at the FX-effect. Plan your entry accordingly.
Finally select the financial instrument that suits your philosophy. With 1MSEK I would guess that a global index fund (as preached in this community) probably would suit you fine.
Up ahead we might see some interest rate cuts. You might wanna look into papers that could benefit from that (despite the fairly long investment horizon).
With 1MEUR, 1MUSD you might wanna look into some alternative investments as well. There is loads of ideas here. I would suggest some gold (maybe not now though). Silver. Maybe some emerging markets. Maybe look at some old dividend kings and so on.
That’s my two cents. Hit me! 
Consider this scenario: if you possessed a 1M-portfolio, would you opt to sell it entirely today, only to gradually reinvest again? Of course not! Then it is rational to fully commit right away. Statistically, this approach also holds merit.
However, it’s not that straightforward in reality. How might your friend respond if there is a sudden 30% market downturn? If the answer is he/she would sell in panic and swear off the stock market entirely, advising a staggered investment approach would be deemed more prudent.
In the end, there’s no definitive right or wrong approach. The optimal strategy varies depending on individual circumstances.
1 gillning