It's still hard to know what to invest in even after years of investing experience. Choosing where to start is mind boggling when there are literally thousands of options to choose from.
I think the best place to begin is with shares that are long-term, diverse and growing.
Here are three of my favourite ideas for a beginner:
Australian Foundation Investment Co.Ltd. (ASX: AFI) (AFIC)
AFIC is the largest listed investment company (LIC) on the ASX. Its sole aim is to invest in other shares and generate investment returns for shareholders and then pay out a lot of that profit as a dividend.
AFIC has been operating since the 1920s and has maintained or grown its dividend every year for the last two decades.
Some of its largest investments include Commonwealth Bank of Australia (ASX: CBA), BHP Billiton Limited (ASX: BHP) and Telstra Corporation Ltd (ASX: TLS).
AFIC is currently trading with a grossed-up dividend yield of 5.78%.
BETANASDAQ ETF UNITS (ASX: NDQ)
This investment gives investors exposure to some of the biggest technology companies in the world such as Apple, Microsoft, Amazon, Facebook and Alphabet (Google).
Not only are these instantly recognisable names but they're actually strong investment ideas as well. Technology companies can utilise the strength of their data and platforms to continue growing revenue at an impressive rate.
Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)
This Vanguard fund invests in a huge range of businesses that trade on several stock exchanges around the world except for the USA. Asia, Canada and Europe all feature heavily in the top 100 holdings.
Some of its top holdings include Toyota, Samsung, Nestle, Tencent, HSBC, Unilever and Royal Dutch Shell.
I wouldn't expect a lot of income or growth from this investment with how expensive the world stock markets are but it's a great way to get strong international diversification.
Foolish takeaway
At the current prices, I think the NASDAQ index will be the best long-term winner simply because of how fast its largest constituents are growing. I don't think AFIC and the Vanguard index can generate market-beating returns from the current prices.
