I encouraged my mom to invest money over the next five years. Right now she is keeping everything on her bank account with no yield returns. And I told her she could get more money back than getting 2-4% from a bank, if she locks her money away for a year.
My own portfolio situation is that of a complete denegerate. AMD, NVIDIA, Nebius Group and IREN Limited. Largest position is AMD by far. Bought at all time highs, so I'm in a hefty minus, but I can handle the volatility and I'm in for at least the next five years, before I start thinking about reallocations or diversification.
I don't think I should invest that crazily with my moms money though. She won't invest huge sums. Maybe a 1000 Euro position and the beginning and then a monthly investment of 100 Euro.
The first obvious choice for me was the S&P 500 ETF, because that one has had good returns in the last years and I believe in the US economy over the next many years.
An alternative is going for a bigger gamble and picking an individual company stock. The four I had in mind were Google, Amazon, META or Broadcom: solid companies, which should continue to grow over the next 5 years and could outperform the S&P 500. And if my bet doesn't pay off, I would cut some of my own positions and give it to my mom, so that she doesn't miss out on at least +7% annually in either case - and obviously not lose any money.
Any advice? Just go for the ETF and forget about it? Go with one of the individual stocks and hope for better returns? One look at my own portfolio and you can probably imagine that I would gravitate towards Broadcom. Other stocks to consider? Or a semi-conductor ETF, since I'm a fan of those?
Any input is greatly appreciated.