How to invest $1M?

I've got an interview with Capital Markets for a summer tomorrow that I just found out about today and I know this question will probably come up.

I have no idea how to answer it or what the expectation would be.

What proportions would you invest in risky vs less risky asset classes? Within each asset class what would you invest in? For instance, in equities would you just put the money into the S&P? What bonds would you buy?

Also if you have 5 years vs 30 years, what difference would it make? I'm guessing 30 years you'd invest into an ETF whereas 5 years you'd invest into a single stock???

Bit of a cheeky question but I'm genuinely desperate lol

4 Comments
 

Not sure how I’d actually answer this, but at least for 5 years I’d probably say something in industries that are expected to have some solid growth like tech while hedging against macro downturns via treasuries or a small tech short position.  
 

Only investment question I’ve been asked was a 3 months horizon at a few EBs (Evercore, Lazard, and HL RX asked me that), and they seemed to like my answer that was basically following earnings reports a few weeks out and selling before the news since you can’t really “invest” on a horizon that short. Have no idea about 30 years, though I’d personally do an ETF. Didn’t get offers there tho. 

 

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