Getting started with investing and ASX shares can be scary. May people view the sharemarket as one giant casino and the uninformed might tell you that buying shares is indeed no better than putting it all on red and spinning the wheel. Sure, some people do invest like this, but it doesn’t (and shouldn’t) have to be this way. It is very possible and achievable to make conservative, sensible investment decisions that will grow your hard-earned cash over time.
The key is looking at stocks that you might own as buying stakes in well-run businesses. Having this mindset will change the way you think about investing and make sure you are less worried about seeing red on the night-time news.
The easiest way to get started with investing (in my opinion) is outsourcing some of the tough decisions at first to professional investors that make a living from choosing quality companies. Here are two ASX shares that do just that and, in my view, would make for a great first, second, or even twentieth investment.
Magellan Global Trust (ASX: MGG)
Magellan Global Trust is a listed investment trust (LIT) that invests in some of the best companies in the world. The Magellan Financial Group (ASX: MFG) has built a name on building quality investment vehicles and does a pretty good job of picking stock for you. Some of MGG’s current holdings include Mastercard, Microsoft, Alphabet Inc. (Google) and Starbucks, so you are getting a slice of all these great companies with one MGG share. MGG also targets a 4% cash distribution each year, so you can either get a great source of passive income as well or reinvest this money at a 5% discount for more MGG shares through its reinvestment program.
MGG charges a management fee of 1.35%, but this may be worth it considering MGG has delivered a 16.22% return since its inception.
Whitefield Limited (ASX: WHF)
Whitefield is a listed investment company (LIC) that was founded back in 1923. Since then, Whitefield has built a reputation as a steady hand, with a stable and conservative investing portfolio of Australian shares that would suit beginners very well, in my opinion. Some of Whitefield’s current top holdings include Commonwealth Bank of Australia (ASX: CBA) and Medibank Private Ltd (ASX: MPL).
Whitefield currently charges a management fee of 0.4%, pays a 4.08% dividend (on current prices) and has delivered a performance of roughly 11.5% annually over the past 10 years.
If you’re thinking about getting started with investing, both of these companies would be good first choices (in my opinion). Both WHF and MGG are easy investments that let others do the hard work of actually choosing individual companies for you, while also having great track records to give you some confidence that your money is being put to work.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.