Building a $100,000 investment portfolio with only ASX growth shares is not for the faint of heart. Growth shares can be a lucrative ground to hunt for oversized ASX returns. However, growth shares can also be volatile and often have a tendency to underperform during market sell-offs. This can make them emotionally taxing investments to hold if things go south on the markets.
But if you can stomach this volatility, then building a $100,000 portfolio of growth shares could be the right path for you. So here’s how I would build such a growth-focused portfolio:
Spend $25,000 on Openpay Group Ltd (ASX: OPY) shares
Openpay is one of the ‘mid-tier’ players in the red-hot buy now, pay later (BNPL) space. Its shares have been on an absolute tear in recent months, rising more than 300% over the past 3 months alone. Even with the current Openpay share price, I still think there could be an opportunity here for a long-term investment. Unlike its bigger rivals Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), Openpay focuses more on life’s ‘bigger’ purchases, such as medical bills, hardware, bedding and dental. I think this is a relatively untapped niche, and if Openpay can keep its momentum going, I’m optimistic about the prospect of a decent, long-term payoff from this company.
Spend $25,000 on Polynovo Ltd (ASX: PNV) shares
Polynovo is one of the most exciting, up-and-coming ASX healthcare shares in my opinion. Its flagship ‘Novosorb’ product is a cutting-edge skin treatment for severe burns, which has already received rave reviews from various corners of the medical profession. Polynovo is also working to expand into the hernia and breast implant markets, which (if the company can pull it off) represent significant future growth opportunities. The Polynovo share price has yet to re-touch its February high, which I think could mean there is plenty of near and long-term growth left on this runway.
Add $25,000 of Marley Spoon AG (ASX: MMM) shares
Marley Spoon is a meal delivery service that works on a subscription basis. It targets consumers who care about quality, nutritious meals but lack either the time or inspiration to shop for the ingredients themselves. The company provides a continually updated menu and delivers the precise ingredients enabling customers to cook their chosen meals at home. The trend towards time-effective, healthy eating was already on the rise prior to COVID-19.
Following the onset of the pandemic and its associated lockdowns, however, the move towards these types of services has accelerated even further. As a result, the Marley Spoon share price has been on fire in recent months, climbing more than 500% year to date. This was fuelled by revelations the company’s services were selling like hot cakes during lockdowns, with sales up 46% in the first quarter of 2020. If even some of this recent increase in the demand for convenient, cook-at-home meals continues longer term, I think Marley Spoon has a very bright future.
Finish with a $25,000 investment in ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO)
This exchange-traded fund (ETF) holds a basket of global companies that are all involved in robotics and automation. I feel this is an area we can probably all agree is ripe for sizable future growth. In my opinion, the trend towards greater automation is one of the most significant in the commercial world. Afterall, every company wants to become more efficient with their capital. With this investment, you are buying into companies like Daifuku Co, NVIDIA, ServiceNow, and iRobot (the robotic vacuum cleaner company, not the Will Smith movie!). I believe these are all exciting and disruptive growth organisations. This ETFs management fee isn’t exactly cheap at 0.69% per annum. But I think it’s worth it considering the global exposure this ETF can provide for us ASX investors.
Where to invest $1,000 right now
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.