Investing in ASX shares in your 20s is one of the best thing you can do for your future wealth.
The power of compound interest works better the longer you give it to work.
When you're young I think it's best to go for ASX shares that offer the best growth potential. So, with that in mind, here are three ASX shares that could be good for investors in their 20s:
MFF Capital Investments Ltd (ASX: MFF)
This has arguably been the best listed investment company (LIC) to over the past five years because it invests in shares that are listed overseas, which have performed better than the ASX index and could continue to do so.
Some of its top holdings include growth shares like Visa, MasterCard and Alphabet (Google) which are truly global businesses that could keep growing regardless of what's going in any particular region.
It has lower management costs than other high-performing LICs, so I think it's well worth holding for the long-term.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
This is an exchange-traded fund (ETF) that invests in the leading US technology businesses on the NASDAQ such as Microsoft, Amazon, Apple, Facebook, Alphabet and many of the names.
I think this ETF could be one of the best to own over the longer-term because of how much the large tech shares are changing the world. Devices, video streaming, gaming and so on – they are dominant in many areas and you may be able to add automated cars and virtual reality to that list in a few years.
Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE)
My current favourite ETF is this Vanguard one that invests in Asian share markets outside of Japan.
The Asian region is the place that has been creating the most economic growth for the past couple of decades and now the wealth is flowing through to its ordinary citizens who are spending more on 'middle class' type services such as travel, eCommerce, insurance and gaming, to name a few.
Asian businesses are trading at cheaper valuations and are generating more growth than western share markets, which is why I think this ETF could be a great buy-and-hold for the next two decades.
