Like any journey, the first step in investing is often the hardest to take – because there’s no turning back after you start. Once you put your hard-earned dollars on the line, things start to become easier, but it’s the risking of your capital that makes it hard in the first place.
Of course, the worst part about getting started in shares is choosing the shares themselves. You will no doubt be spoilt for choice, and maybe even have a few recommendations flying at you from friends or family.
The 2 ASX shares that I have chosen below are great options for a starter portfolio, in my opinion. Without forcing you to choose individual shares of your own to start with, the pressure is off somewhat. Here’s what I’m talking about.
Argo Investments Limited (ASX :ARG)
Argo is a listed investment company (LIC), which means that it’s a company that acts like an investor – picking the shares itself that its investors own by extension.
This company has made a name for itself as a ‘slow-and-steady’ manager of capital. It deliberately picks Australian shares that won’t make anyone rich overnight but have a strong history of consistent growth – making it a great first investment choice, in my opinion.
Magellan Global Trust (ASX: MGG)
This listed investment trust (LIT) works in a similar way – a professional team picks the shares to invest in on your behalf. What’s great about MGG is that the team mostly chooses stocks from the US and other countries around the world, so you are investing in names like Microsoft, Apple, Facebook and Alibaba just by buying one single share (which is pretty cool, in my view).
This trust can buy or sell their stocks anytime things change with the companies or the economy, so you can sit back and let them do their thing without too much stress. For these reasons, I think MGG is a great choice for beginners too.
Here we have 2 great stocks that I think would be perfect for any beginner investor trying to build a starter portfolio. All the tough decisions are made without you, so you can easily dip your toes in the water without too much worry.
Where to invest $1,000 right now
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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Sebastian Bowen owns shares of Facebook. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has recommended Facebook. 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.