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Managing investments to make your daughter study, how much room for gold?

The couple wonders which ETFs to use for the investment plan they have devised since birth. The time horizon goes as far as 2041

by Federica Pezzatti

30 September 2025

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

When my daughter was born, my wife and I opened a PAC, in which, through the advice of an advisor, we put monthly payments into equity funds in different geographical areas supplemented by one-off amounts into a flexible fund that invests in equity and bond ETFs (with a preference for equities). At the birth of my daughter, my wife and I opened a Pac, in which, through the advice of an advisor, we make monthly deposits in equity funds of different geographic areas supplemented by one-off amounts made in a flexible fund that invests in Etf on equities and bonds (with a preference for equities). The time horizon is 2041. We have the possibility of increasing the monthly payments with an additional 150 euros which, with a view to diversification, we would like to invest independently in a Pac in gold physical replica Etc. What do you think? Which Etc do you recommend? Alternatively, is it better to invest the 150 euro in an equity Etc? If so, which one?

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Federica Pezzatti answers

It costs money to bring children into the world and raise them with the care to build a solid future for them, through proper education and with an emphasis on sports and languages. Not to mention the summer bloodletting of working parents who have to shell out big bucks for camps, babysitting and so on during the three months when schools are closed. And in September, books and notebooks, rather than tablets and backpacks, weigh further on the family budget.

As emerged from a recent survey by Moneyfarm based on the current cost of living, raising a child in Italy from 0 to 18 years involves an expenditure of between 107 thousand and 205 thousand euro, for an average of around 156 thousand euro and an outlay of over 8,500 euro per year. These are figures that make one think, and so well behaved are those who, like you, save what they can for this purpose from the cradle. Among other things, the investment strategy constructed for your daughter demonstrates far-sighted and methodical planning. With a time horizon until 2041, the family has a crucial asset: time, which historically has always rewarded patient and disciplined investors.

"The idea of adding an Etc on gold to one's asset allocation has solid theoretical underpinnings," explain Consultique Scf. "The precious metal traditionally serves as a safe haven asset during phases of geopolitical instability and inflation, offering a historically low correlation with equity markets. For a portfolio with a 20-year horizon, a small allocation to gold (typically 5 per cent of the total) can reduce overall volatility'.

Among the available Etc's reported by Consultique are WisdomTree Physical Gold and Xtrackers Physical Gold Eur Hedged which represent solid options with physical replication, low commissions and high liquidity for the amounts to be purchased'. Beware, however, of currency hedging, which could be interesting for reducing the euro-dollar exchange rate risk, although it often comes at a significant cost.

"However, with a 17-year horizon, the equity component could offer potentially higher returns," they add from Consultique. Gold, although an excellent diversification tool, unfortunately does not generate cash flows (and among other things is now travelling at levels unimaginable a few months ago)'. If you opt instead for an equity ETF, consider Vanguard Ftse All-World, which offers global exposure to over 3,700 stocks with very low fees. Alternatively, iShares Core Msci World provides exposure to developed markets without currency hedging.

"On a practical level, given the young age of the parents and the extended time horizon, we suggest a hybrid approach," explain Consultique. "We would allocate EUR 100 per month to the global equity Etf and EUR 50 to the gold Etc. This allocation (67% equities, 33% gold on new deposits) would make it possible to maintain a strong exposure to global economic growth, while benefiting from the stabilisation offered by the precious metal'.

It is important to remember that the geographic and sector diversification already implemented is adequate. "The addition of this €150 per month, regardless of the choice, will represent a significant contribution to the growth of the daughter's assets, harnessing the power of compound interest over such an extended period of time," explain Consultique. For example, according to Moneyfarm's simulation, setting aside 200 euros a month on a constant basis from the moment a child is born until he or she turns 18, investing in an asset allocation with a hypothetical gross annual return of 7% would mean obtaining, from the total 43,200 euros paid in, an amount of around 84,200 euros. Of course the markets must help, but it does no harm to try.

Federica Pezzattiredattore
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Luogo: Milano
Lingue parlate: italiano, inglese, tedesco
Argomenti: assicurazioni, inermediazione assicurativa, polizze, fondi comuni, contenzioso assicurativo e finanziario
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