I’m thankful for asking advice, as a beginner Swiss investor, to such a fantastic community of experts, which I have regularly followed for a while.
As I am a novice, I’d like to ask your feedback on my portfolio ideas.
I believe this discussion may help other people who are beginners in DIY investing. I found indeed related threads, but not very recent ones.
First, as I am a complete beginner, I decided to split my investment budget (currently around 20k chf/year, may increase over time) into two parts, 50% to be allocated to a roboadvisor (True wealth, the cheapest I found), 50% for DIY investing (with De Giro). Not ideal from a fee standpoint, I know, but it helps me to get started faster and not procrastinate too much
As for the DIY part, I’d like to keep my portfolio as simple and diversified as possible (ideally, a buy and hold strategy). As I am relatively young (around 30yo) and without specific goals at the moment (e.g., buying a house, car, etc), I’d like to simply focus on long-term growth: only keeping a fixed amount of my money in a “sleeping” savings account, and try to make the rest grow as much as possible in the long-term, regardless of temporary losses.
I thought about two possible asset allocations, to be realized via low-fee ETFs:
Portfolio A: 80% world stocks, 20% Swiss stocks.
A pitfall is that it relies entirely on stocks. Usually I would add a percentage of bonds, but to my current understanding (please correct me if wrong!), it is not convenient to invest in Swiss bonds for a Swiss investor, due to their negative yield.
Portfolio B: 70% world stocks, 20% Swiss stocks, 10% gold.
If I understand well, gold seems roughly uncorrelated to stocks, so it might be a good addition to the portfolio to decrease its volatility.
My questions are:
- Do you think it is reasonable to disregard Swiss bonds, as a Swiss investor, because of their current negative yield?
- Should I focus on specific Swiss stocks? (e.g., only mid cap if large-cap ones are covered in the world stock etf).
- Do you think that adding gold may increase long-term returns (as somehow implied by these simulations: https://thepoorswiss.com/invest-in-gold/ ), or do you think it may not have such an effect?
In general, do you think portfolio A/B above could represent reasonable asset allocations for somebody in my situation? By only considering asset allocation, am I neglecting any important elements?