INVESTMENT advisers were asked to recommend portfolios for three cases involving $1 million lump sums. This is what they came up with: A 30-year-old with no mortgage or immediate income who is looking for long-term capital growth and is prepared to take some risk. BARRY Lea, regional marketing director for Hill Samuel recommends its 'adventurous portfolio', a high-risk capital growth fund. The fund is 100 per cent invested in equity funds and is focused on Southeast Asian and emerging markets. This will include a 10 per cent exposure to warrants. Mr Lea said: 'Returns can potentially be very rewarding but carry corresponding high downside risk.' A 40-year-old couple with two children wanting to use part of the money for school fees in five years. WILLIAM Tatham, divisional director of Towry Law International, would split the lump sum evenly between a guaranteed with-profits fund - a product sold by insurance companies - a discretionary portfolio, where the investor delegates to a broker or fund manager, and longer-term capital growth funds. Mr Tatham said: 'There are several types of with-profit funds available, including those denominated in sterling, deutschmark and the US dollar. These include second-hand endowments and offshore lump sum with-profit bonds. 'If they were to use US dollars, I would recommend Clerical Medical International's Wealthbuilder plan; or, for the sterling investor, Equity & Law's 'Amulet'.' For the discretionary portfolio he would recommend a Guinness Flight personal portfolio management service. 'There is a choice of four different types of service ranging from lower-risk income to higher-risk capital growth, along with a choice of currencies which includes US dollar, Swiss franc, sterling and even a 'global' currency portfolio.' Guinness Flight charges are five per cent initially and 0.5 per cent annually. The remaining third of the assets would be invested in longer-term growth funds. Mr Tatham said: 'Depending upon their risk/reward profile, they might choose to purchase a spread of one or two funds, or again, farm out the management to one of Britain's best performing fund managers, Perpetual.' A 50-year-old couple with no immediate income requirements planning for retirement. TIMOTHY Kelley, senior vice-president of Citibank, recommends the following portfolio: Cash-plus investment 25 per cent; global bonds 40 per cent; equities 35 per cent. The equity breakdown would be: North America five per cent; Japan 10 per cent; Asia-Pacific excluding Japan, 20 per cent. Mr Kelley said: 'For our couple, who have a long-time horizon but a low tolerance for risk, we most likely would recommend a conservative portfolio. 'The portfolio would be balanced and globally diversified - with the global bond and cash portions providing capital stability and equity exposure, to enhance returns over time. 'Allocations to the different asset classes are defined by Citibank asset allocation specialists, who apply portfolio optimisation techniques to arrive at combinations aimed at getting the best returns at a pre-defined risk level,' he said. 'Our recommended portfolio is designed with risk and return characteristics likely to match their expectations. 'We also would recommend the use of mutual funds to implement their portfolio. 'Effective diversification requires a substantial investment and not every investor will have the financial muscle to invest, say, in global bond markets. Mutual funds offer a cost-effective way to diversify a portfolio.'