One advantage of investing in your 20s is that you can afford to take higher risks.
This doesn't mean you should start day trading your savings away, it just means you can invest in companies which might not be suitable for investors approaching retirement.
This is because if you're in your 20s, you have a lot of time to recover your losses if things don't go to plan.
Another advantage of investing in your 20s is the ability to benefit greatly from compounding.
For example, a single $10,000 invested in the share market and earning a 9% return would grow to be worth ~$23,700 in 10 years. Whereas in 40 years it would be worth a massive ~$315,000.
If you can then afford to invest $5,000 into the share market each year after year one (and earn the same return), you'll have amassed a fortune of $2.15 million at the end of year 40.
That certainly is a nice nest egg to retire on, with only a very limited outlay each year.
With that in mind, here are three top ASX shares I think could be good options for investors in their 20s:
Afterpay Ltd (ASX: APT)
The first share that I think investors in their 20s ought to consider buying is this payments company. I believe it is well-positioned for growth over the next decade thanks to the growing popularity of buy now pay later with consumers and retailers and its international expansion opportunity.
Bubs Australia Ltd (ASX: BUB)
Another option to consider is Bubs. It is a goat's milk-focused infant formula and baby food company which has been growing its top line at a rapid rate over the last couple of years. Pleasingly, I believe it still has a long runway for growth. Especially given its growing distribution footprint online in China and offline in Australian supermarkets.
Pushpay Holdings Group Ltd (ASX: PPH)
A final option to consider is Pushpay. It is a provider of a donor management system, including donor tools, finance tools, and a custom community app to the faith sector. It has been growing at a rapid rate thanks to its leadership in a niche but lucrative market. I believe can continue its growth over the coming years thanks to its sticky product, the shift to a cashless society, and its industry-leading software.
