The coronavirus share market selloff has been brutal, as has the healthcare side with the human toll.
People who are looking to start investing during this time are brave, but they are being presented with much cheaper prices than just over a month ago.
Here are two beginner share ideas:
MFF Capital Investments Ltd (ASX: MFF)
It's hard to say which industry or country will be affected by this the most. It's also hard to say where the recovery will come the quickest too.
MFF Capital is an internationally-focused listed investment company (LIC). It's invested in some of the world's best businesses like Visa and Mastercard. It has a diverse portfolio and portfolio manager Chris Mackay can decide to invest anywhere in the world in the best opportunities during this time.
In the 2010s it was probably the best performing LIC on the ASX with great investments and relatively low costs. Once this is over it could continue to be a great performer.
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is another diversified option, this one is more ASX-focused. It's invested in the funds of fund managers who are invested in ASX shares. Those fund managers work for free so that 1% of Future Generation's net assets can be donated to youth charities.
Those youth charities are particularly important during times like this so the support is very helpful.
Each fund is invested in a portfolio of shares, so that means that the 20-ish funds Future Generation is invested in provides very good underlying diversification.
Future Generation is well positioned to outperform during times like this because it's invested in a number of 'absolute return' funds, meaning some of those funds 'short' stocks where they can still make money when share prices fall.
I'm not sure what Future Generation plans to do with its dividend in the short-term, but its trailing grossed-up dividend yield is 8.6%. Solid, but the current dividend level is certainly not guaranteed if markets don't bounce back strongly later this year.
Foolish takeaway
Both businesses are probably trading at an attractive discount to the net tangible assets (NTA), it's hard to know what the exact discount is because share prices are moving so much. But whilst there's a lot of fear in the market, I think it's a great time to start investing in a diversified portfolio like the ones offered by MFF Capital and Future Generation.
