One area of the market that I'm particularly bullish on over the long term is the tech sector.
In this sector I believe there are a good number of shares that could generate strong returns for investors throughout the 2020s.
Three of the best ASX tech shares to buy in FY 2021 are listed below. Here's why I think they are great long term options:
Altium Limited (ASX: ALU)
The first ASX tech share to consider buying is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer platform. This award-winning platform is used by almost 50,000 users to connect with every facet of the PCB design process. While FY 2020 has been a disappointing year because of the disruption caused by the pandemic, I believe the future remains as positive as ever. Especially given how 5G internet is supporting the rise of connected devices globally. I expect this to result in strong demand for electronic design software over the next decade.
Pushpay Holdings Ltd (ASX: PPH)
Another ASX tech share to consider buying is Pushpay. It is a donor management system provider which has a strong and growing presence in the church market. In fact, as of the end of FY 2020, it has a total of 10,896 customer using its platform. From these customers, Pushpay generated US$127.5 million in revenue. While this is a significant number, it is still only scratching at the surface of management's medium term target. It is aiming to win a 50% share of the medium to large church market, which represents a $1 billion revenue opportunity. Given the quality of its platform and the recent acquisition of Church Community Builder, I believe it will get there.
Xero Limited (ASX: XRO)
A third ASX tech share to consider buying in FY 2021 is Xero. It is a New Zealand-based cloud accounting software company which has been growing its customer base at a rapid rate over the last few years. So much so, Xero finished FY 2020 with a total of 2.285 million subscribers. This was a 26% lift on the prior corresponding period. And combined with an increase in average revenue per user, the company reported a 30% increase in operating revenue to NZ$718.2 million. The good news is that I'm confident Xero still has a long runway for growth. This is thanks to its massive global market opportunity and its high quality and sticky product. As a result, I think it could be a great buy and hold option.
