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Your instant 5 share rapid growth portfolio

Did you know that in order to double your share portfolio in 10 years, a compounded annual return of just 7.2% is all it takes? Over the past 30 years, the Australian share market has returned, on average, 11.7% per year.

With interest rates so low, it’s no wonder why so many Australians are considering taking at least some of their money from lacklustre term deposits and venturing into the stock market.

Knowing where to start is the hardest part though. And populating a watchlist, let alone a portfolio, can be difficult. So here are five growth stocks you can consider adding to your watchlist and/or portfolio today.

1. Infomedia Limited (ASX: IFM) develops and distributes software for automotive servicing, parts ordering and invoicing. The company was recently admitted into the S&P/ASX 300 (INDEX^: XKO) (ASX: XKO) following huge rises in its share price over the past two years.

2. Macquarie Group Ltd (ASX: MQG) is our largest investment bank and has significant exposure to booming Asian and recovering US markets. Growing into annuity-style areas such as mortgages, Macquarie has become a more conservative money manager since the GFC. It is expected to pay a dividend of 4.8% with partial franking in the next 12 months.

3. Slater & Gordon Limited (ASX: SGH) is an Australian leader across a number of areas of litigation. In addition, the group is growing strongly in the UK market, where it expects to derive 45% of revenues in the next year. At today’s price it appears to be an excellent long-term buy and hold.

4. Cover-More Group Ltd (ASX: CVO) only listed on the ASX this year and is already up 23%. It controls a huge share of the travel insurance market and is being forecast by analysts to grow its earnings per share and dividends at a rapid pace in the next few years. However, its potential appears to be baked into the current market price. Waiting for a lower entry point could save you money.

5. Yellow Brick Road Holdings Ltd (ASX: YBR) is an unprofitable junior diversified wealth management firm. In the next two years it is expected to become profitable, as the company benefits from economies of scale through the increased revenue run rates of its growing number of mature businesses.

Buy, Hold, or Sell?

Whilst Macquarie and Cover-More remain firmly fixed on my watchlist, I already own shares in Infomedia, Slater & Gordon and Yellow Brick Road and continue to think they are good investments…

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Motley Fool Contributor Owen Raszkiewicz owns shares in Slater & Gordon, Yellow Brick Road Holdings Ltd and Infomedia. The Motley Fool owns shares of Infomedia.