Motley Fool Australia

3 ASX shares that I’d invest $1,000 into EVERY month

Clock showing time to buy, ASX 200 shares
Image source: Getty Images

There are some ASX shares that I’d invest $1,000 into every single month.

I think it’s important to realise that some shares can be very volatile and in some weeks it might not be such a good idea to pay that higher price.

For example, over the past month the Afterpay Ltd (ASX: APT) share price has traded above $58 and below $46. I wouldn’t commit to a consistent investment strategy into a single business like Afterpay when it’s so volatile.

But there are some ASX shares that it could make sense to invest $1,000 into every month, particularly in these coronavirus times. Here are three of those monthly ideas:

Share 1: Vanguard MSCI Index International Shares ETF (ASX: VGS)

I think it’s the easiest to commit to a monthly investment strategy with exchange-traded funds (ETFs). ETFs will always trade at their net asset value (NAV), they’re normally diversified and usually come with low costs.

ASX shares offer good potential investments, but the ASX only represents 2% of the total global share market. We can invest in many of the world’s biggest and best businesses with Vanguard MSCI Index International Shares ETF.

It is invested in over 1,500 businesses across major developed countries such as the US, Japan, the UK and France. Its top holdings are shares like Apple, Microsoft, Amazon, Alphabet, Facebook, Johnson & Johnson, Visa and Nestle.

Despite COVID-19, the ETF has generated returns of 10.3% per annum over the last three years. It has an annual management fee of 0.18% per annum. 

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is an interesting business. It’s an investment conglomerate that has been going for over a century. I think it will be around for many decades to come with how it’s set up.

It is invested in a variety of businesses like TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Clover Corporation Limited (ASX: CLV), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Magellan Financial Group Ltd (ASX: MFG).

Soul Patts also owns stakes in a variety of unlisted businesses like swimming schools and agriculture.

The ASX share is steadily increasing its diversification and the share price generally tracks its underlying portfolio value. It’s not an ETF, but I think it’s another great option to diversify a portfolio.

Soul Patts has a great dividend record. It has paid a dividend every year in its existence since 1903 and it has grown its dividend each year since 2000.

I’d be happy to invest $1,000 every month into Soul Patts shares every month because it nearly always looks good value to me, has good diversification and offers something very different to a typical ASX share ETF.

Share 3: Future Generation Global Invstmnt Co Ltd (ASX: FGG)

Future Generation Global is one of my preferred listed investment companies (LICs).

I like it for three reasons.

The first is that it has good philanthropic credentials. It donates 1% of its net assets each year to youth mental health charities. But there are no management fees or performance fees involved with this LIC. Indeed, there aren’t many costs at all as many services are provided to Future Generation Global for free.

The second reason is Future Generation Global is diversified. It’s an ASX share itself, but it invests in the funds of fund managers who target overseas shares. It’s invested with high-quality fund managers like Magellan Financial Group Ltd (ASX: MFG). Each fund represents a whole portfolio of shares, so Future Generation Global could be invested in many dozens of different non-ASX shares.

The third reason is that it looks great value. At the moment the share price is trading at a 21% discount to the May 2020 pre-tax net tangible assets (NTA). That’s despite Future Generation Global’s portfolio outperforming the MSCI AC World Index (AUD) over the past month, six months, year, three years and since inception in September 2015.

Foolish takeaway

I’d be very happy to invest $1,000 a month into each of these ASX shares. Future Generation Global definitely looks like the best value with the big NTA discount. But Soul Patts could be the most reliable over the long-term.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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.

*Returns as of February 15th 2021

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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.

Related Articles…

Latest posts by Tristan Harrison (see all)