If I wanted to regularly invest $1,000 into an ASX share EVERY month, I’d pick of these ideas including MFF Capital Investments Ltd (ASX:MFF).
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There are some ASX shares that would make good ideas to invest $1,000 into every month.
Instead, there are some ASX shares that would be good for a regular investment plan such as these picks:
MFF Capital Investments Ltd (ASX: MFF)
This is a LIC run by the co-founder of Magellan Financial Group Ltd (ASX: MFG), Chris Mackay. I think Mr Mackay is one of the best fund managers in Australia.
Over the past decade the LIC has been a very strong performer. According to CMC, MFF Capital has delivered total shareholder returns per annum of 17.5% over the past 10 years.
COVID-19 has detracted from returns, but I think MFF Capital is well placed to deliver good returns over the long-term. For starters, its fees are attractively low. Unlike most active fund managers, MFF’s management expenses are fixed at a fairly low level – cheaper than most other LICs – and as a percentage those fees will become smaller as the LIC’s assets grow in value.
I like its assets. Some of its largest positions include Visa, Mastercard, Home Depot, CVS Health, Berkshire Hathaway, Facebook and Microsoft. These businesses have solid long term prospects.
The ASX share has announced its intention to continue to grow its ordinary dividend for shareholders and it is usually priced cheaper than its pre-tax net tangible assets (NTA). Indeed, at the time of writing the MFF Capital share price is valued at a 9% discount to the 30 September 2020 NTA.
Betashares Global Quality Leaders ETF (ASX: QLTY)
This is an exchange-traded fund (ETF) which invests in high-quality global businesses.
What counts as quality? To make it into the ETF’s holdings, companies need to rank well on return on equity (ROE), debt to capital, cash flow generation ability and earning stability.
It has an annual management fee of just 0.35% per annum, which is a lot cheaper than you’d probably pay for an active manager to put together a ‘quality’ portfolio.
The ETF doesn’t invest in ASX shares, just global businesses – as the ETF’s name might suggest.
It has 150 holdings. I won’t list them all, but here are the ones that made it into the top 10 positions: Keyence, Nike, Nvidia, Intel, Texas Instruments, Apple, Adobe, Intuit, Intuitive Surgical and Johnson & Johnson.
The ETF has only been around since November 2018, though obviously the underlying companies have been operating for many more years than that. Since inception its net returns have been an average of 19.6% per annum.
WAM Leaders Ltd (ASX: WLE)
This is another LIC. It aims to invest actively in large cap ASX shares. It’s operated by Wilson Asset Management (WAM), with lead portfolio manager Matthew Haupt at the helm.
It has done very well since inception in May 2016. At 31 August 2020, it had outperformed the S&P/ASX 200 Accumulation Index by 3.5% per annum, and over the prior 12 months it had outperformed the index by 10.7%.
I believe that WAM Leaders could be one of the best ways to invest in large cap ASX shares. Some of its ‘active’ picks in its top 20 holdings include Downer EDI Limited (ASX: DOW) and Star Entertainment Group Ltd (ASX: SGR).
Not only does WAM Leaders provide portfolio outperformance, but it also has a really attractive dividend. At the time of writing, WAM Leaders has a grossed-up dividend yield of 7.9%.
ASX blue chip shares can provide fairly reliable returns if you pick the right ones. I think WAM Leaders is a solid pick and is usually trading at a discount to its NTA.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now
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Motley Fool contributor Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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