There's always something to worry about in the world, you don't want your investments to be one of them.
Some people seem quite happy to invest in high-risk, speculative shares. But if you want to be able to sleep well at night you may want to choose shares that are relatively stress-free.
It's impossible to escape share market volatility, but I do think there are many good shares out there that can provide good long-term returns with less volatility, like these three:
Arena REIT No 1 (ASX: ARF)
This is a real estate investment trust (REIT) that invests in 'social' property and then receives solid, regular rental income.
Most of the properties are childcare ones but it also has healthcare, education and government ones with long-term leases and it regularly achieves rental increases. That's how Arena has managed to achieve consistent operating earnings and distribution growth over the past few years. It provides very reliable returns for shareholders.
It's currently trading with a 4.9% distribution yield.
Future Generation Investment Company Ltd (ASX: FGX)
Future Generation is a listed investment company (LIC) that doesn't charge any management fees. It invests in ASX-focused fund managers who work for free so that Future Generation can donate 1% of its net assets to youth charities each year. It's a great idea.
Some of the fund managers that it invests in are 'absolute return' funds, meaning they try to produce positive returns even if the market isn't doing well. The LIC's portfolio has achieved a gross return better than the ASX since inception with lower volatility.
It currently offers a grossed-up dividend yield of 5.9%.
Magellan Global Trust (ASX: MGG)
Magellan Global Trust is listed investment trust (LIT) which invests in the highest quality businesses in the world including Alphabet, LVMH, Visa and Starbucks.
The LIT and its unlisted sibling fund have built a reputation for generating stronger-than-average returns whilst also not falling as much when the market drops. At the moment 9% of its portfolio is allocated to the safety of cash.
Since inception in October 2017 the LIC has delivered an average return, net of all fees, of 15.4% per annum.
It aims to pay a 4% distribution yield to investors each year.
Foolish takeaway
Each of these investments has an attractive long-term future with less volatility than the market, good capital growth and solid yields. At the moment the Future Generation LIC is trading at a nice discount to its assets, but Magellan Global Trust has a stronger group of businesses to pick from so it would be my pick.
