When it comes to buying ASX shares, the minimum investment for a normal trade is $500 (which is set by the Australian Securities Exchange). Depending on your broker, you might have to pay a brokerage cost on top of that, but that's another issue.
You can still get a small parcel of practically any ASX company for $500, so here are some options to consider if you're thinking about an investment in today's market.
Woolworths Group Ltd (ASX: WOW)
I think Woolies is a great choice for a $500 investment today. Everyone knows this supermarket heavyweight's 'green W', which comes with a dominant position in Australia's grocery market.
The Woolworths share price is also looking attractive in my view. Woolies shares were asking almost $44 just over a month ago, but today, you can pick some up for just $36.15 – a 17.84% turnaround. Thus, I think Woolworths is a great ASX share for a $500 investment today.
Telstra Corporation Ltd (ASX: TLS)
Like Woolworths, Telstra is one of the most recognisable companies in Australia. It is the dominant player in the Aussie telco space and commands around a 50% market share in both the mobile and fixed-line markets.
It's also a company that I don't see being too harshly affected by the outbreak of the coronavirus – unless customers decide they want to give up their phones and internet connections! But that hasn't stopped the Telstra share price dropping nearly 12% over the last month.
Telstra also offers a nice dividend yield – 4.65% on current prices. For these reasons, I think an investment in Telstra today would serve its facilitator well!
Vanguard Australian Shares Index ETF (ASX: VAS)
A final option to consider is this broad market index fund. VAS holds within it the largest 300 companies in Australia. That's everything from Commonwealth Bank of Australia (ASX: CBA) to JB Hi-Fi Ltd (ASX: JBH) – and Woolworths and Telstra as well for that matter.
Investing in such a diversified investment is a great reason why I think a $500 lump sum would go down well in VAS. It too has lost a decent chunk of value over the last month (around 17%) – but all that means is you can get 17% more units in VAS with your $500 than a month ago.
Over time, I expect this ETF to continue to do very well for investors and I think today's prices are a great place to start!
