The share market can be quite daunting for an investor who is brand-new to the ASX.
Where are you supposed to start? There are thousands of shares on the ASX to consider.
Some people might say it’s an idea to invest in businesses we see in everyday life like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) and Telstra Corporation Ltd (ASX: TLS).
But, I don’t think any of the above shares will be good investments over the next five years.
Instead, I think new investors should go for growth. So, with ‘new’ in mind, here are three shares that start with ‘N’ and are growth options:
BetaShares NASDAQ 100 ETF (ASX: NDQ)
This exchange-traded fund (ETF) offers exposure to some of the best technology businesses in the world such as Apple, Amazon, Alphabet (Google), Facebook, and Microsoft. Investing in these companies seems like a better idea to me than Telstra and Woolworths.
Smartphones, online retail, online advertising and cloud computing are all only going to become bigger industries and the NASDAQ businesses will be major beneficiaries of that.
There will be volatility along the way but I think this ETF could be one of the best shares to hold over the next decade, as long as the US doesn’t break them up.
National Veterinary Care Ltd (ASX: NVL)
National Vet Care is one of the largest veterinary clinic groups in Australia and New Zealand. I like the vet sector because it seems fairly defensive, but it’s growing due to our ‘humanisation’ of pets, we will spend what it takes to keep them alive and healthy with annual checkups.
The main National Vet Care strategy is to acquire additional clinics to expand its network. This isn’t the greatest idea in the world, but it’s fairly easy to implement. As long as the existing network can generate decent organic growth and maintain profit margins then National Vet Care should be a decent option for the foreseeable future until it reaches an acquisition ceiling.
It recently made a large acquisition in New Zealand called Pet Doctors, adding an extra 23 clinics to the group, which will boost profit immediately in FY19.
Naos Emerging Opportunities Company Ltd (ASX: NCC)
One of the better ways to beat the market over time is to invest in small caps. It can be very difficult to identify the best small caps yourself, but that shouldn’t put you off this section of the market.
I think it could be an idea to invest in a fund that specialises in doing that. Naos Emerging Opportunities is a listed investment company (LIC) that invests in other shares that have market capitalisations under $250 million.
Since inception in February 2013 this LIC’s portfolio has returned an average of 15.86% per year by only investing in a few shares that the investment team have a high-conviction with.
It currently has a grossed-up dividend yield of 8.1%.
I’d be very happy to own all three of the above shares in my portfolio and at the current prices I would definitely like to invest in National Vet Care shares because it is predicting a bumper 2019 financial year.
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Motley Fool contributor Tristan Harrison owns shares of NATVETCARE FPO. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and Telstra Limited. The Motley Fool Australia owns shares of NATVETCARE FPO. 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 Scott Phillips.