ASX shares are a great way for a beginner to start building their wealth.
Unlike property which takes tens of thousands of dollars to start investing, you can start with ASX shares with as little as $500.
Here are three ASX shares I’d buy as a beginner investor:
Vanguard MSCI Index International Shares ETF (ASX: VGS)
The easiest way to invest may be to just invest in the entire global share market in just one investment.
Vanguard is a world leader in providing exchange-traded funds. The idea is that Vanguard is owned by the investors and it shares its ‘profits’ by lowering steadily lowering fees.
This ETF is invested in over 1,000 businesses across the world. It’s invested in businesses like Alphabet (Google), Microsoft, Amazon, Nestle, LVMH, Unilever, SAP, Toyota and so on. It’s not focused on shares on the ASX.
It’s the type of investment that could be your only investment for many years. It pays a decent dividend and only has a management fee of just 0.18%, which is very cheap for such a diversified product.
Future Generation Investment Company Ltd (ASX: FGX)
I think everyone should take an interest in Future Generation. It’s a philanthropic listed investment company (LIC) that donates 1% of its net assets each year to youth charities. It amounts to millions of dollars every year.
The LIC invests in fund managers who work for free for Future Generation. It’s a great system. It offers excellent diversification with how many different funds it’s invested in, which each represents a portfolio of ASX shares. The shares it’s invested in are generally smaller, so they have more growth potential.
I also like that the LIC has the potential to outperform when the market is falling with the cash it’s holding.
An attractive portion of the returns come to investors in the form of fully franked dividends from Future Generation.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital doesn’t invest in ASX shares, it invests in some of the best shares in the world like Visa and Mastercard.
Chris Mackay has expertly guided the globally-focused LIC to be one of the best performers over the past decade. I think MFF Capital can continue to be a long-term performer by the focus on quality and reasonable valuations.
MFF Capital is growth-focused, so I think it suits beginners well because you don’t need big income to start with.
Foolish takeaway
I think each of these ASX shares would be a good way for beginners to start investing with their diversification and solid historical performances. At the current prices I’m more drawn to MFF Capital and Future Generation than the Vanguard ETF.
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More reading
- What ASX shares should you invest in during a bull market?
- Is the global share market in a bubble?
- Have $10,000? This is where I’d invest it into ASX shares
- Why it’s a good week to buy international shares
- Should your share portfolio actually be 50% cash right now?
Motley Fool contributor Tristan Harrison owns shares of FUTURE GEN FPO and Magellan Flagship Fund Ltd. 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.
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