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Where to invest $1,000 in ASX shares this month

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If you’re just starting out with investing then there’s a fair chance that you won’t be dropping $10,000 or $20,000 into the share market.

In fact, if you’re like me, your first investment might be around the $1,000 mark.

To make a success of this first investment I believe investors need to focus on shares that have strong long-term growth potential.

This can turn a small investment into something material given a long enough time horizon and the power of compound interest.

With that in mind, here are three shares that I think would be great options for a $1,000 investment:

Altium Limited (ASX: ALU)

Altium is an award-winning printed circuit board (PCB) design software provider which has been growing at an impressive rate over the last few years. The good news is that I believe it still has a significant runway for growth thanks to the rapidly growing Internet of Things market. As PCBs are found in almost all connected devices, I expect demand for its software to continue increasing at a strong rate for a long time to come. In addition to this, I feel the company’s underappreciated Octopart business has a lot of potential and could support its long-term growth.

LiveTiles Ltd (ASX: LVT)

A high risk/high reward option could be this digital workplace platform provider and award-winning Microsoft Partner. I’ve been impressed with the way that LiveTiles has been growing over the last few years and feel confident it can continue for some time to come. The company’s platform allows its users to easily create dashboards, employee portals, and corporate intranets. These can then be enhanced through artificial intelligence. Demand for its offering has been growing strongly, leading to the company tripling its annualised recurring revenue (ARR) year-to-date to $34.5 million at the end of the third quarter.

Xero Limited (ASX: XRO)

Another option for that $1,000 investment is this leading cloud-based business and accounting software provider. Xero has been a standout performer on the Australian share market over the last couple of years thanks to increasing subscriber numbers and strong recurring revenue growth. Given its massive global market opportunity, high quality product, and strong pricing power, I believe it is well-placed to continue this trend for a long time to come.

Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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

*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Xero. 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.

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