Want 'set and forget' investing? Try these 3 LICs

Investors shouldn't be afraid of letting other people manage some of their money.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There are so many different businesses out there it's hard to know which ones to invest in.

The longer you invest the more you realise how many good investment opportunities there are out there that you don't know much about. That's why I'm comfortable with the idea of investing in listed investment companies (LICs) with effective investment teams that invest in shares I wouldn't normally consider.

Here are three LICs that fit the above description for me:

Clime Capital Limited (ASX: CAM)

Clime is a small LIC run by John Abernethy and his investment team. It has a portfolio that invests in ASX large caps, medium caps and small caps. It also invests some of the portfolio in overseas businesses.

Some of its top holdings include National Australia Bank (ASX: NAB), APN Outdoor Group Ltd (ASX: APO) and Collins Foods Limited (ASX: CKF). I don't own any of these, so with Clime I'd be getting diversification into these companies that I wouldn't normally invest in.

Clime has maintained or increased its dividend every year since 2012 and currently has a grossed-up dividend yield of 7.92%.

WAM Microcap Limited (ASX: WMI)

WAM Microcap is the newest LIC released by Wilson Asset Management. There is a lot of money to be made by investing in the right microcap, but it's hard to know which one to choose.

Wilson Asset Management have a knack for getting it right, which is why there is a good chance the investments in stocks like Swift Networks Group Ltd (ASX: SW1), SMS Management & Technology Ltd (ASX: SMX) and Reckon Limited (ASX: RKN) could work out.

WAM Microcap plans to pay a dividend once the business has made a profit.

Whitefield Limited (ASX: WHF)

Whitefield invests in all the large caps of Australia such as Commonwealth Bank of Australia (ASX: CBA), BHP Billiton Limited (ASX: BHP) and Telstra Corporation Ltd (ASX: TLS).

I'm not a big fan of most of the biggest businesses on the ASX but Whitefield has shown it can generate market-beating returns by focusing on them.

Whitefield has a grossed-up dividend yield of 5.38%.

Foolish takeaway

I think all three LICs are a good way to diversify your portfolio whilst still getting good returns. WAM Microcap should be a winner and Clime continues to pay a pleasing dividend.

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia owns shares of National Australia Bank Limited and Telstra Limited. 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 Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »