From talking to friends and family who have a vague goal of ‘starting out’ with investing, my conclusion can only be that investing seems to be on par with going to the dentist for procrastination enthusiasm.
This is disturbing for me in many ways – as I personally think investing is far less painful and far more rewarding than an oral clean (albeit less important to your physical health).
So if you’re reading this, and you’ve been guilty of this sin – have no fear. Here are 2 easy options for a first investment that require minimal effort on your part.
iShares Global Healthcare ETF (ASX: IXJ)
This exchange traded fund (ETF) is a great choice for beginners for a few reasons. Firstly, being an ETF, you don’t have to worry about choosing shares yourself. IXJ automatically tracks a group of the biggest healthcare companies in the world, leaving you out of the tough decisions. Some of its current top holdings include Johnson & Johnson, Pfizer and Novartis.
Secondly, I think healthcare is one of the safest sectors to invest in – no tech disruption is likely to remove the need for humans to get good quality medical care (especially as we all live longer). For these reasons, I think IXJ will make a great choice for ay starter portfolio (or any portfolio really).
Australian Foundation Investment Co Ltd (ASX: AFI)
AFIC is a listed investment company (LIC) and one of the oldest on the market, having started life way back in 1928. AFIC is similar to an ETF in the way that it outsources the decision making for you – you are leaving it up to AFIC’s management team to invest your money on your behalf.
This company has a reputation for slow-and-steady, conservative type investing with a focus on strong dividend payments. Its top investments are typically ASX blue-chips like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP). I think this investing style is fantastic for new investors – you won’t be seeing wild swings in this company’s share price most of the time.
I think these two investments would be perfect for anyone who has been procrastinating when it comes to getting started in investing. Both options are fairly ‘hands-off’ and easy to get your head around – so what are you waiting for?
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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.