Arguably one of the easiest ways to create wealth is by investing regularly with a long term view and taking advantage of the power of compound interest.
Given how much of an impact time has on your potential returns, perhaps the most important message to all investors is to start early and to re-invest as much of your returns as possible.
If you are young, you can also afford to take higher risks as you have time on your side to recover from any losses. This means your portfolio can have a greater weighting to growth shares than say someone who is approaching retirement.
With that in mind, here are three top shares that younger investors might want to consider as long term investments:
Afterpay Ltd (ASX: APT)
The first share to consider buying is buy now pay later provider Afterpay. Due to the growing popularity of this payment method with consumers and retailers and its first-mover advantage, I believe Afterpay has the potential to become a giant of the payments industry. Especially if Tencent Holdings, which recently became a substantial shareholder, opens the door to the lucrative Asian market in the coming years.
BetaShares NASDAQ 100 ETF (ASX: NDQ)
Another option for investors in their 20s to consider is the BetaShares NASDAQ 100 ETF. This exchange traded fund gives investors exposure to many of the largest and most well-known tech companies in the world through a single investment. This includes the likes of Amazon, Apple, Netflix, and Google parent, Alphabet. Given the growth potential of these companies, I believe the BetaShares NASDAQ 100 ETF could provide investors with strong returns over the next decade and beyond.
NEXTDC Ltd (ASX: NXT)
Another company which I think could be a great option for investors in their 20s is NEXTDC. I believe the data centre operator is well positioned to capitalise on the ever-increasing amount of data being generated by both consumers and businesses. And with this consumption only going to increase in the future as more software moves to the cloud and 5G internet adoption grows, the future looks bright for NEXTDC.