Invest your first $10,000 in these cheap ASX shares today

Here’s why Macquarie Group Ltd (ASX: MQG) and other cheap ASX shares are a great way to invest $10,000 for your long-term future.

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If you’ve got $10,000 to invest today, cheap ASX shares can be a great way to do that. While buying larger parcels of shares can be scary, the good news is you’re on the right track.

While you might be tempted to go all-in on the next hot tech share, let’s see if we can split that $10,000 for both growth and dividends. Here are a few of my top picks to add to your portfolio for a good price today!

How to invest $10,000 in cheap ASX shares today

Let’s start with a strong ASX dividend share that’s trading cheaply. I like the聽Fortescue Metals Group Limited (ASX: FMG) share price which is up 11.69% in 2020. Fortescue is the world’s fourth-largest iron ore miner and could be in the buy zone right now.

There are challenges facing the mining sector, but I’m reasonably bullish. I think strong relationships with China, increasing demand from the Asian giant and increasing Australian infrastructure spending could be good for iron ore prices and earnings.

Fortescue shares are yielding 8.31% right now and trading at a price-to-earnings (P/E) ratio of 4.78. For context, BHP Group Ltd (ASX: BHP) shares are trading at a P/E of 10.88 which means the $37 billion iron ore miner could be good relative value and worth a $4,000 investment.

Another cheap ASX share that I like the look of is聽Xero Limited(ASX: XRO). Xero is part of the WAAAX tech shares and could be a good buy for future growth. The accounting platform provider’s shares have edged higher this year but could surge in 2020.

Xero continues to add new clients to its book which means further growth is on the cards. Where Fortescue shares can provide your portfolio income, I think $3,000 in Xero shares could provide long-term growth.

Finally, I like the look of聽Macquarie Group Ltd(ASX: MQG) as a cheap ASX share with income and growth potential. Macquarie is a diversified investment bank and I think it could outperform its Big 4 rivals throughout 2020. Macquarie shares are down more than 20% in 2020 and yielding a tidy 5.80% right now, which means a $3,000 investment could have significant upside.

Foolish takeaway

A simple $10,000 investment can turn into much, much more in the decades ahead. As long as you’re investing in high-quality ASX shares and diversifying your exposure, that’s a great long-term strategy.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of 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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