If you’re a beginner investor or just thinking about getting started in shares, you may have been spooked by the recent market volatility. But this is part of the deal if you want to invest, and most long-term investors are used to fluctuations like this. Just remember over time the general trajectory is up and dips can be great opportunities to just buy more shares. The greatest investor of all time – Warren Buffett – likes to say that the share market is the only market in the world that investors run out the door when there’s lots of bargains!
So saying this, here are two ASX shares you might want to look at for a starter portfolio.
Argo Investments Limited (ASX: ARG)
Argo is what’s known as a Listed Investment Company (or LIC for short). LICs are companies that invest in other companies, so you are basically outsourcing the hard work of picking stocks to a professional management team.
Argo is an ‘old-fashioned’ LIC (its been around since 1946) and is basically designed to be a conservative, steady investment vehicle that won’t make you rich overnight, but will allow long-term wealth building through steady capital growth and sturdy dividends. Its portfolio is made up of over 100 stocks, including blue-chips like Commonwealth Bank of Australia (ASX: CBA) and Rio Tinto Ltd (ASX: RIO).
iShares Asia 50 ETF (ASX: IAA)
IAA is an exchange traded fund (or ETF) which basically means you get a basket of different shares in one buy. In this case, you are getting what the name tells you – the largest 50 companies in Asia. IAA has a 36.8% exposure to Chinese companies, 21.6% in Korea (South Korea if you were wondering), Hong Kong at 18.8%, Taiwan at 15.9% and Singapore at 6.34%.
Some of the specific top companies are Tencent, Samsung and China Mobile, but there are 47 more, so you are getting diversified exposure to Asian markets, which (in my opinion) offer some of the greatest growth potential over the next decade.
Both of these shares would be a great addition to a starter portfolio or even as your first investments. Both shares ‘pick’ the underlying companies for you, so the pressure is off. If you think Asia is a region worth having exposure to, by all means go with IAA, but if you just want to stick with Aussie companies for now – Argo is a great choice too!
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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.