My mum asked me for investing advice is this what I should tell her?


So recently, my parents came to my place and my mum saw that I have Graham's Intelligent Investor and asked if she can get any stock tips. I told her it doesn't work like that.

However, my parents do have a large expense coming up in around 6 – 7 years time because they will need to put down a deposit for my sister's apartment and furnish it (they did the same for me when I started university).

My following plan is this, I make a detailed document of a few pages where I write that its crucial to DCA the day after your paycheck and to not sell etc etc. I plan on telling my parents to buy:
– 40% global market ETF (accumulating), its mostly developed markets anyway and like over 60% US
– 40% emerging market ETF (accumulating)
– 10% MWIG40TR (accumulating ETF for mid caps in my country)
– 10% SWIG80TR (accumulating ETF for small caps in my country)

Please don't write ticker symbols of ETFs because I live in Europe and I don't have a brokerage account that gives me access to US ETFs so I preferably need ETFs listed in London (and I will find them).

As for the choice of ETFs the first global market index is basically a developed market index anyway with like 60% US so there are barely any emerging markets in there. I want to be overweight emerging markets because they are cheaper than developed markets and since the US has outperformed in the last few years they will likely have a few years of underperformance and countries that have massively underperformed like China will likely outperform.

The last 2 ETFs have high expense ratios 0,7% and 0,8% but they give exposure to well priced Polish mid cap and small cap companies that have low P/Es, little government ownership, high dividend yields and they generally grow much better than the large cap WIG20. Is this home bias? Yes, but its not without good reason.

Another thing to add is that a few years ago my dad lost a lot of money on options, contracts so that's why there is no mention of individual stocks here and preferably he wouldn't have access to the account.


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