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Coronavirus: Where I’d invest $5,000 into shares right now

The S&P/ASX 200 Index (ASX: XJO) is down again today after the latest restrictions were announced in Australia because of the coronavirus. It could be a good time to put $5,000 to work into shares.

The last time we had such a large decline of the share market during a short period of time was during the GFC. In hindsight, the GFC was one of the best times in history to buy. This may well prove to be another great time. Prices are already a lot cheaper.

Here are a few shares I’d be happy to put $5,000 into shares:

WAM Microcap Limited (ASX: WMI) – $1,500 

WAM Microcap is one of the shares that I invested in last week, so I’m definitely putting my money where my mouth is here.

Small caps are the shares that usually get smashed the most in this type of environment and it’s no surprise that the WAM Microcap share price is down 32% since 21 February 2020.

However, WAM have moved the portfolio to around a third cash at the last disclosure, so there’s plenty of downside protection. When all of this is over I think WAM Microcap could be one of the top performers with their selective process of the best small cap growth shares.

Altium Limited (ASX: ALU) – $1,500 

Altium is one of the best shares on the ASX. It has a fantastic balance sheet with a large cash pile and no debt, which means it should be able to sail right through this.

The electronic software business’ share price is down 12% today on no news, despite the US announcing a large stimulus package for the economy.

It has an attractive long-term future with the world’s trend towards an ‘Internet of Things’ lifestyle.

Whilst it does have a higher price/earnings ratio than most blue chips, its growth prospects are much higher. It particularly helps that it recently launched its Altium 365 service, which means people can work via the cloud – perfect timing for the call to work from home.  

Magellan High Conviction Trust (ASX: MHH) – $2,000 

Magellan High Conviction Trust is a listed investment trust (LIT) managed by Magellan Financial Group Ltd (ASX: MFG). It focuses on a small group of shares that it thinks are the best businesses in the world.

Its top five holdings, in alphabetical order, are: Alibaba, Alphabet, Facebook, Microsoft and Visa. These are excellent businesses that are market leaders, with good balance sheets, long-term growth prospects and very attractive unit economics. They’re the best of the best.

All of Magellan’s holdings will get through this period and come out stronger on the other side with competitors weakened.

Indeed, online shopping and online advertising could be the only way for businesses to reach most of their customers for a while.

Foolish takeaway

All three of these shares could be some of the best shares to buy during this volatile time. I’m putting my money to work because I’m optimistic about the long-term returns of the share market compared to all other asset classes.

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Motley Fool contributor Tristan Harrison owns shares of Altium and WAM MICRO FPO. The Motley Fool Australia owns shares of Altium. 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.