When you're in your 20s it's best to go for growth with your investments.
You probably don't need to focus on income until you're much older. Growth shares usually generate the best compound returns over the long-term, particularly as they are re-investing their earnings for more growth.
That's why I think these three ASX shares could be good for investors in their 20s:
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)
One of my picks is my favourite exchange-traded fund (ETF). We've all heard about the rise of Asia, particularly China.
I believe that Asia is the best place to look for good value investments at the moment, yet most investors are looking at US shares. Asian shares are trading at much cheaper value, which is why this ETF has a price/earnings ratio of only 12, yet has an earnings growth rate of 12% and a return on equity ratio of nearly 16%.
The China and India economies are likely to grow much quicker than Australia and the US over the next few decades, with the big businesses like Tencent, Alibaba, Samsung and Ping An large winners from the economic growth of the Asian middle class.
MFF Capital Investments Ltd (ASX: MFF)
MFF Capital is one of the best performing listed investment companies (LIC) on the ASX. It focuses on holding international shares for the medium-to-long-term and has done very well.
According to Bell Potter, for the decade ending 31 January 2019 MFF Capital has generated an average return per annum of 18.4% including dividends. Due to having a fixed management fee of $1 million per quarter, the management fee is falling as the net assets of the LIC increases. Its annual management fee is close to 0.4% for one of the best-performing LICs.
Its top two holdings are currently Visa and MasterCard, which account for around 29% of assets. These two businesses have exciting long-term futures, which could make MFF Capital a good investment today.
Altium Limited (ASX: ALU)
My final choice is one of the best individual businesses on the ASX in my opinion. Altium is an electronic PCB design software business.
Altium has already proven to be a great growth share but it is projecting much more growth to come. After setting a revenue goal of US$200 million by 2020 in the past, management are confident of achieving that goal. Now Altium is aiming for US$500 million revenue by 2025 with 100,000 Altium Designer subscribers.
With a number of high profile customers like Space X, Tesla, Amazon, Google, Microsoft, Qualcomm, NASA and Boeing it's clear that Altium is positioned to help deliver the products, services and transportation of the future.
However, it's quite expensive at 51x FY20's estimated earnings.
Foolish takeaway
I believe all three of these ASX shares could be good to own for the next decade for young investors, that's why I'm an investor in each of them and want to buy more.
