5 high-growth stocks to buy the grandchildren    

Investing just a small amount in high-growth stocks at reasonable valuations can deliver unbelievable returns over the long term.

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If you’ve got a small amount of spare money you’re looking to turn into a small fortune for the children or grandchildren over long-term horizons then high growth stocks built for the future are where you should look. Software and technology businesses able to meet increased corporate and consumer demand for their services are likely to perform particularly well. Fortunately the S&P/ASX ALL ORDINARIES Index (INDEXASX: XAO) currently has several businesses offering up excellent opportunities in this regard.

GBST Holdings Limited (ASX: GBT) is a software services provider to the financial services industry globally, especially the back office functions of major banks, brokers and fund managers. Its growth mission is to sell its software services globally and this July it has announced the successful delivery of two major software service provision deals with a large U.S. investment bank and one of the USA’s best known capital markets players, Raymond James.

GBST is coming off a small base and starting to deliver on its growth potential, best of all selling for $3.33 it still trades on a very reasonable 15 times projected FY 2014 earnings. Given the recent success, future potential, and growing dividend, GBST looks a strong buy.

Vocus Communications Limited (ASX: VOC) is another up-and-coming technology business with a strong future. Vocus provides fibre-optic internet services to corporate clients and with an excellent management team, competitive advantage and business built to serve future demand, Vocus also looks a buy. Selling for $5.08 it trades on around 22 times 2015’s projected earnings with a growing dividend payout.

My Net Fone Limited (ASX: MNF) is another telecommunication technology business built for changing consumer and corporate demand. It provides Voice over Internet Protocol (VOIP) services that allow people to digitally communicate over the Internet, rather than through the traditional fixed line telephone or mobile networks. Selling for $2.57 My Net Fone trades on around 22 times estimated 2015 earnings and like all the above businesses, has been steadily growing its dividend.

Amcom Telecommunications Limited (ASX: AMM) is another junior technology stock widely tipped to have a stellar future. It provides high speed communication services to a range of corporate and public sector clients, with potential to grow as demand naturally increases. Selling for $1.95 Amcom trades on around 17 times analysts’ forecasts for 2015’s earnings.

Finally iiNet Limited (ASX: IIN) is a mid-cap telco founded in a Perth garage in 1993 now worth over one billion dollars, which shows just how quickly successful telco or technology stocks can grow. iiNet’s growth runway still looks reasonable as it puts internet users onto the National Broadband Network (NBN). Australia’s internet technologies are still relatively under-developed compared to the high speeds enjoyed by the rest of the world, and company’s like iiNet look to have plenty of opportunity to profit yet.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tom Richardson owns shares in My Net Fone, iiNet, Vocus and GBST. You can find him on Twitter @tommyr345

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